GOVERNMENT OF INDIA MINISTRY OF FINANCE ANNUAL … · B.2. Drawing & Disbursing Officers (DDOs)...
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1 GOVERNMENT OF INDIA MINISTRY OF FINANCE ANNUAL REVIEW OF INTERNAL AUDIT WING 2011 – 12 GOVERNMENT OF INDIA OFFICE OF THE CHIEF CONTROLLER OF ACCOUNTS MINISTRY OF FINANCE NEW DELHI
Transcript of GOVERNMENT OF INDIA MINISTRY OF FINANCE ANNUAL … · B.2. Drawing & Disbursing Officers (DDOs)...
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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
ANNUAL REVIEW OF INTERNAL AUDIT WING
2011 – 12
GOVERNMENT OF INDIA
OFFICE OF THE CHIEF CONTROLLER OF ACCOUNTS
MINISTRY OF FINANCE
NEW DELHI
2
PREFACE
The Internal Audit Function has been viewed as an integral part of
Government Financial Management and is increasingly an instrument for
improving the performance of the Government. It covers a broad range of
activities, which have different objectives. The focus of Internal Audit, till now,
has been mainly on compliance audit, i.e. to ensure proper maintenance of Records,
proper application of Rules, Regulations and Instructions issued by the Government
of India from time to time and also to ensure accuracy in Accounts and efficiency
in operations. Keeping this aspect, the Annual Review highlights issues which
need immediate attention of the Heads of Department. Other matters pointed out in
the Audit Reports which are routine in nature, have been excluded from this Report.
Internal Audit in Central Government is a nebulous area which in today’s
economic scenario requires greater attention. Increasing awareness by an
empowered public along with legislative focus on outputs and outcomes has
precipitated the need for a paradigm shift in the functioning of Internal Audit in the
Government. Internal Audit needs a convergence of financial propriety, accounting
techniques, administrative mandate and refinement of personal skills to make it an
effective tool in the hands of the executive that will encompass the entire domain of
governance to achieve the stated outcomes. Therefore, in years to come, we hope
to make Internal Audit, an even more participative effort taking into account risks
and priorities in Government functioning.
I would like to place on record our deep appreciation for the co-operation
extended by various units of the Ministry of Finance during the course of Audit. I
also wish to acknowledge and appreciate the hard work of officers and staff of the
Internal Audit Wing.
The contents of the Review are based on the information elicited from
various units audited during the year 2011 - 12. Suggestions for improvement will
be gratefully appreciated and the same may be communicated to the Headquarters
of Internal Audit Wing, 4th
Floor, Room No. 413, A.G.C.R. Building, I.P. Estate,
New Delhi or may be conveyed through e-mail to [email protected].
(DR. D.N. PATHAK)
Chief Controller of Accounts
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INDEX
S.
No. CONTENT
PAGE
NUMBER
1 Preview 4
2 Executive Summary 11
3 Targets & achievements during 2011 – 12 19
4 Major irregularities found during the year 2011 – 12 21
(A) DEPARTMENT OF ECONOMIC AFFAIRS 21
(i) National Savings Institute 21
(ii) PAOs / DDOs (Department of Economic Affairs) 24
(B) DEPARTMENT OF FINANCIAL SERVICES 27
(i) DRATs / DRTs 27
(ii) DDOs (Department of Financial Services) 32
(C) DEPARTMENT OF REVENUE 36
(i) Enforcement Directorate (FERA / FEMA) 36
(ii) Central Bureau of Narcotics / D.O.O. 36
(iii) PAOs / DDOs (Department of Revenue) 45
(D) DEPARTMENT OF EXPENDITURE 48
(i) PAOs / DDOs (Department of Expenditure) 48
(E) DEPARTMENT OF DISINVESTMENT 51
(F) PUBLIC SECTOR BANKS & GRANTEE INSTITUTIONS 51
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PREVIEW
Internal Audit Inspection is conducted by way of “on-the-spot” verification with
a view to ensure that the initial records are maintained by the Executive Officers
properly, Rules, Regulations and Instructions issued by the Govt. of India from time to
time are complied with, uniform procedures are adopted in the matter of payment and
accounting, corrective measures, wherever necessary, are initiated promptly and
qualitative improvement is brought out. The Internal Audit also investigates the area of
economy for appropriate action and also provides feedback on the accounting formation
of the Ministry as an aid to management function. The Principal Accounts Office,
PAOs, DDOs, as well as Attached and Subordinate Offices of Department of
Economic Affairs, Department of Financial Services, Department of Revenue (except
accounting formation of Departments of CBDT and CBEC), Department of
Expenditure and Department of Disinvestment come within the jurisdiction of Internal
Audit.
In the last few years, there has been globalization of economy and international
business as well as co-operation has increased resulting in shift in the area of
governance. The emphasis is more on efficient and effective management of the
Government functions, explicit standards and measures of performance of Government
Officials and enhanced services rendered to the citizens of the country. These new
dimensions require that sources are discharged efficiently and effectively. Thus, a
systematic feedback mechanism needs to be installed to have an assurance that
functions of Government are being discharged efficiently and effectively. Internal
Audit is an effective tool for providing objective assurance and advice that adds value,
influences change that enhances governance, assist the management, performance of
units, control process and improve accountability of the result.
The Ministry of Finance has five Departments viz :-
(A) Department of Economic Affairs;
(A) Department of Financial Services;
(B) Department of Expenditure;
(C) Department of Revenue; and
(D) Department of Disinvestment.
The Principal Accounts Office, PAOs, DDOs as well as attached and
subordinate offices of Department of Economic Affairs, Department of Financial
Services, Department of Expenditure, Department of Revenue (except accounting
formations of CBDT and CBEC) and Department of Disinvestment come within the
jurisdiction of Internal Audit.
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The periodicity and jurisdiction of audit has been proposed based on the
identified parameters like the budget being handled by the units, the nature of duties
including presence of procurement functions and activities related thereto, number of
officials serviced by the unit and strength of the audit parties coupled with the need to
cover as many units as possible at desired intervals.
During the financial year i.e. 2011-12, 79 units of various Departments of
Ministry of Finance were planned for audits. Out of which 52 units could be covered.
The targets could not be achieved because the available staff was deployed in some
important training programmes.
The Department-wise units details and their periodicity are appended below:-
(A) DEPARTMENT OF ECONOMIC AFFAIRS :
A.1 National Saving Institutions (NSI)
The National Savings Organization re-structured as National Savings Institute
(NSI) is under the Administrative control of Ministry of Finance, Department of
Economic Affairs (Budget Division), New Delhi. Its Headquarter is at Nagpur
(periodicity – Annual) and 10 Regional Offices (periodicity – Biennial) are located at
various places in India.
The re-structured NSI collects and collates data in respect of Small Savings,
generates studies and policy inputs related to Small Saving Instruments, their tenures,
interest rate structure, rules governing withdrawals etc. Apart from these, NSI deals
with the matters relating to training, product design, market research, international co-
operation and litigation etc.
A.2. Pay & Accounts Officers (PAOs) / Drawing & Disbursement Officers
(DDOs)
Under the provisions contained in Central Treasury Rules / Receipt and
Payment Rules, the drawl of money from the Government accounts and disbursements
are being handled by an officer called the “Drawing and Disbursing Officer” (DDO),
whose main function is to draw funds within the prescribed budget allocation, for
incurring expenditure and realize receipts for credit to Government Accounts on behalf
of the Head of Office.
The under mentioned Offices of the Department of Economic Affairs are
attached with the Pay and Accounts Office (Secretariat.), Department of Economic
Affairs, New Delhi :
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1. PAO (Secretariat), New Delhi :-
(i) Under Secretary / DDO (Cash), DEA, New Delhi.
(ii) Under Secretary / DDO (IES), DEA, New Delhi.
(iii) DDO, Securities Appellate Tribunal, Mumbai.
List of other PAO’s under the Department of Economic Affairs :-
2. PAO (Establishment.), New Delhi
3. PAO (Banking) New Delhi
4. PAO (NSO) Nagpur
5. PAO (Internal Debt Accounting), New Delhi
(B) DEPARTMENT OF FINANCIAL SERVICES :
The Department of Financial Services was created on 28th
June, 2007 by
merging the erstwhile Banking and Insurance Divisions. Broadly, the functions of the
Department are related to banking, insurance and pension reforms. Policy support is
provided to the Public Sectors Banks (PSBs), Public Sector Insurance Companies and
Development Financial Institutions (DFIs) i.e. NABARAD, SIDBI, IIFCL, EXIM
Bank, IDFC, NHB and IWRFC, IIBI through policy Public Sectors Insurance
Companies and DFIs. Policy formulation in respect of Non-Banking Financial
Companies, private banks and foreign banks is also done by the Department of
Financial services which also provides support to regulatory authorities i.e. RBI, IRDA,
PFRDA, NHB and NABARD.
The Department of Financial Services is divided into following Categories :-
B.1. Debt Recovery Appellate Tribunals (DRATs) & Debt Recovery Tribunals
(DRTs)
The Parliament of India, enacted an Act called the “Recovery of Debts due to
Banks and Financial Institutions Act,1993” for establishment of Tribunals and
Appellate Tribunals for expeditious adjudications and recovery of debts due to Banks
and Financial Institutions and matters connected therewith or incidental thereto. The act
was notified on 27.08.1993 allowing creation of several Tribunals to be known as Debts
Recovery Tribunals / Appellate Tribunals in various States of India excluding state of
Jammu and Kashmir with defined jurisdiction. The units of DRATs / DRTs were
established under administrative control of Department of Economic Affairs.
Consequent upon creation of Department of Financial Services all these units were
transferred to the Department. At present there are 5 Debts Recovery Appellate
Tribunals and 33 Debts Recovery Tribunals, all over India. These Tribunals entertain
cases of Debts above Rs. Ten Lakh.
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B.2. Drawing & Disbursing Officers (DDOs)
Under the provisions of Central Treasury Rules / Receipt and Payments Rules,
the drawl of money from the Government accounts and disbursements are being
handled by the Drawing and Disbursing Officer (DDOs), whose main function is to
draw funds within the prescribed budget allocation, for incurring expenditure and
realize receipts for credit to Govt. Accounts on behalf of the Head of Office. The under
mentioned offices of the Department of Financial Services are attached with the Pay
and Accounts Office (Banking ) New Delhi, Pay and Accounts Office (NSO) Nagpur
and Pay and Accounts Office (Secretariat), New Delhi and are declared as Non-cheque
Drawing and Disbursing Offices :
1. DDO (Cash), DFS, New Delhi
2. DDO (AAIFR), New Delhi
3. DDO (BIFR), New Delhi
4. DDO (Custodian), New Delhi
5. DDO (Spl. Court), Mumbai and
6. Asstt. Court Liquidator, Kolkata
Periodicity of Audit of all Offices is biennial except DDO (Cash), Department
of Financial Services, which is Audited every year.
(C) DEPARTMENT OF REVENUE :
C.1. Enforcement Directorate
There are 18 Zonal / Sub Zonal offices under Enforcement Directorate with
Head Quarter at New Delhi executing enforcement functions under FEMA / FERA.
The Directorate is mainly concerned with the enforcement of the provisions of Foreign
Exchange Management Act and Foreign Exchange Regulation Act. In pursuance of this
objective the function of the Directorate include, interalia, realization of penalty
imposed by Departmental adjudication orders. Apart from auditing the DDO /
Establishment, the Internal Audit Wing also checks the records connected with seizure
and realization of penalty money.
C.2. Central Bureau of Narcotics.
There are four Zonal offices at Gwalior, Lucknow, Kota and Neemuch under
Central Bureau of Narcotics (CBN) with Headquarter at Gwalior. There are three Govt.
Opium and Alkaloid Work Factories at Gwalior, Neemuch and Ghazipur under
administrative control of Chief Controller of Govt. Opium and Alkaloid Factories,
New Delhi. There are 17 Distt. Opium Offices under administrative control of
Commissioner, CBN, Gwalior.
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C.3. Pay & Accounts Officers (PAOs) / Drawing & Disbursing Officers (DDOs) in
Department of Revenue
Apart from Enforcement Directorate and Central Bureau of Narcotics there
exist some other establishments under Department of Revenue. Payments for these
establishments are being made, receipts being realized and their accounts are being
maintained by the Drawing and Disbursing Officers of these offices :-
(i) DDO (Cash), Department of Revenue.
(ii) DDO, Appellate Tribunal for Forfeited Properties (ATFP), New Delhi.
(iii) DDO, Central Excise & Services Tax Appellate Tribunals at New Delhi,
Kolkata, Mumbai, Chennai & Bangalore.
(iv) DDO, Central Economic Intelligence Bureau (CEIB), New Delhi.
The periodicity of Audit of the Offices of Directorate of Enforcement and DDO
(Cash), Revenue is annual. Periodicity of Audit of the Offices of Narcotics and PAOs
are biennial and periodicity of other Offices is triennial.
(D) DEPARTMENT OF EXPENDITURE :
Functions of the Department.
The Department of Expenditure is the nodal Department for overseeing the
public financial management system in the Central Government and matters connected
with State finances. The principal activities of the Department include pre-sanction
appraisal of major schemes/projects (both Plan and non-Plan expenditure), handling the
bulk of the Central budgetary resources transferred to States, implementation of the
recommendations of the Finance and Central Pay Commissions, overseeing the
expenditure management in the Central Ministries/Departments through the interface
with the Financial Advisors and the administration of the Financial Rules / Regulations
/ Orders through monitoring of Audit comments/observations, preparation of Central
Government Accounts, managing the financial aspects of personnel management in the
Central Government, assisting Central Ministries/Departments in controlling the costs
and prices of public services, assisting organizational re-engineering through review of
staffing patterns and O&M studies and reviewing systems and procedures to optimize
outputs and outcomes of public expenditure. The Department has under its
administrative control the National Institute of Financial Management (NIFM),
Faridabad.
The business allocated to the Department of Expenditure is carried out through
its Establishment Division, Plan Finance- I and II Divisions, Finance Commission
Division, Staff Inspection Unit, Cost Accounts Branch, Controller General of Accounts
and the Central Pension Accounting office.
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1. Pay & Accounts Officers (PAOs) / Drawing & Disbursing Officers (DDOs) in
Department of Expenditure
There are nine Offices (PAOs / DDOs) including three RTCs in the Department
of Expenditure under the Internal Audit jurisdiction of the O/o Chief Controller of
Accounts, Ministry of Finance.
(i) P.A.O. Expenditure, New Delhi.
(ii) P.A.O. C.G.A. New Delhi.
(iii) D.D.O. (Cash), Department of Expenditure New Delhi.
(iv) D.D.O. Cost Accounts Branch, New Delhi.
(v) D.D.O. Finance Commission Division, New Delhi.
(vi) D.D.O. INGAF, New Delhi
(vii) D.D.O. R.T.C. INGAF, Mumbai.
(viii) D.D.O. R.T.C. INGAF, Kolkata.
(ix) D.D.O. R.T.C. INGAF, Chennai.
The periodicity of Audit of above Offices is biennial except the DDO (Cash),
Department of Expenditure, New Delhi which is covered by annual audit programme.
(E) DEPARTMENT OF DISINVESTMENT :
There is only one unit i.e. DDO (Cash) Department of Disinvestment. The unit
has been transferred from Ministry of Industry and Internal Audit Wing has conducted
first time internal audit inspection of the unit during 2009-10. The periodicity of audit
of Cash Branch, Deptt. of Disinvestment is Annual similarly on the pattern of DDO
(Cash) of other 4 Departments of Ministry of Finance. The unit is Non-cheque Drawing
DDO submitting its bills to PAO (Expenditure/Disinvestment) New Delhi.
(F) PUBLIC SECTOR BANKS & GRANTEE INSTITUTIONS
1. Public Sector Banks :
The Internal Audit of Public Sector Banks, handling various Deposit Schemes
of Ministry of Finance, is being conducted by the Banking & Financial Intuitions Wing
of this Office. At present, Internal Audit is undertaken at the Focal Point Branch of
State Bank of India, its Associate Banks and Branches of other Nationalized Banks.
The Bank Audit, at present is limited to scrutiny of records relating to Government
transactions in respect of Public Provident Fund Scheme – 1968 and Senior Citizens
Saving Schemes – 2004 etc.. The primary focus of such Audit is to ensure that the
Codal Provisions of the schemes are adhered to by the Banks. Audit also examines the
transactional efficiencies of various Banks in dealing with Government transactions and
to monitor the collection and remittance of Government money into Government
Accounts. In case, where the receipts are not reported by the Focal Point Branches
within the prescribed time limit, Banks are liable to pay penal interest as per extant
instructions on the subject.
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2. Grantee Institutions :
In exercise of the powers conferred under Rule 20 of the Delegation of
Financial Power Rules, 1978 the Department of Revenue and the Department of
Economic Affairs in the Ministry of Finance have been sanctioning Grants-in-aid to
various Institutions for different purposes and objectives, in accordance with the
provisions contained in Rule 206 of GFRs. Rule 210 enjoins upon a Grantee Institution
to have their Accounts audited / inspected by the grant sanctioning authority.
The various Grantee Institutions, under Finance Ministry such as National
Institute of Public Finance and Policies, Delhi and National Institute of Financial
Management (NIFM), Faridabad are being regularly audited by the Internal Audit
Wing as required vide Para 12.2.1 of the Civil Accounts Manual.
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EXECUTIVE SUMMARY
Against the target of auditing 79 Auditee units under various departments of
Ministry of Finance for the financial year 2011-12, of various departments of
Ministry of Finance only 52 units could be covered. The targets could not be achieved
because the available staff was deployed to some important training programmes, other
administrative works and transferred to other Ministries.
A gist of audit para related to various departments under Ministry of Finance is
given as follows:
A. DEPARTMENT OF ECONOMIC AFFAIRS
(1) NATIONAL SAVINGS INSTITUTE
The National Savings Organization re-structured as National Savings Institute
(NSI) is under the administrative control of Ministry of Finance, Department of
Economic Affairs (Budget Division) New Delhi. It collects and collates data in regard
to small savings; generate studies and policy inputs in regard to Small Saving
Instruments, their tenures, interest rate structure, rules governing withdrawals etc..
Apart from these, NSI deals with the matters relating to training, product design,
market research, international co-operation and litigation.
In the year 2011 - 12, the Unit of NSI – Nagpur, Bangalore, Guwhati, Mumbai,
New Delhi & NSC – Nagpur were audited and some of the important observations are
as under:-
S.
NO.
NAME OF
UNIT
BRIEF DETAILS OF PARAS
REMARKS
01 NSI – Mumbai
(IR – 20)
Para 16. Colossal waste of Pay & Allowances on
A/C of re-deployment of surplus Staff.
Para 17. Un–avoidable payment of interest
amounting to Rs. 1.68 Lakh.
Details as per
Para A. (1) (i)
Details as per
Para A. (1) (ii)
02 NSI – New Delhi
(IR – 04)
Para 01. Payment of rent of Office Building Rs.
6,05,640/- w.e.f. 14.12.2010.
Para 05. Irregular payment of cash handling
allowance Rs. 300/- Smt. Meenu
Aggarwal, Cashier
Details as per
Para A. (1) (iii)
Details as per
Para A. (1) (iv)
03 NSC – Nagpur
(IR – 05)
Para 09. Bogus commission claims for Rs. 16762.60
by MPKBY Agents Smt. Chandra Devi
Srivastva of Joura (Dist. Murena).
Para 21. Review of LTC Register.
Details as per
Para A. (1) (v)
Details as per
Para A. (1) (vi)
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(2) DDOs
Prior to conversion as an Autonomous Body, one Pay & Accounts Office each
was attached with all the nine Units of SPMCIL, all over India. Consequent upon its
conversion, all these nine Units have been transferred to that Autonomous Body w.e.f.
10/02/2006 and all the payments of Pay and Allowances and Office Expenses etc. of
these Units are being born by Autonomous Body itself. The work of
finalization of Pro-rata Pension cases in respect of the absorbed Employees of these
Unit is now over. There were approximately 11000 Pro-rata Pension Cases and
subsequent issuance of PPOs in all cases was targeted for authorization by
30/09/2010 which has also been achieved. The accounts of these Units have already
been inspected by Internal Audit Wing. At present DDO (Cash), DEA, DDO (IES),
S.A.T Mumbai, PAO (Estt.) DEA, PAO(NSO) Nagpur, PAO(Sectt.) DEA, and nine
PAOs attached in past with SPMCIL are Auditee Units in the Department of Economic
Affairs. Periodicity of the DDO (Cash), DEA is annual and periodicity of other Units is
biennial.
During the year 2011 - 12, 02 Units were Audited and some of the important
observations are summarized hereunder:-
3 GRANTEE INSTITUTE
Institute of Economic Growth, New Delhi is the only Grantee Institute in
Department of Economic Affairs which organizes the training to I.E.S.
Probationers/Officers. The Institute manages all its expenditures from the Grants
released by the DDO, Indian Economic Services, Department of Economic Affairs,
New Delhi.
S.
NO.
NAME OF
UNIT
BRIEF DETAILS OF PARAS
REMARKS
01 DDO (Cash)
DEA (IR-19)
Para 21. Non-adjustment of Contingent Advances
to the tune of Rs. 1.88 Crore
Details as per
Para A. (2) (i)
02 DDO (IES) New
Delhi (IR-35)
Para 03. Shortcomings/Omissions Detected in
maintenance of the Records of Grants-in –
Aids
Details as per
Para A. (2) (ii)
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B. DEPARTMENT OF FINANCIAL SERVICES
There are 45 units in the Department of Financial Services, Ministry of Finance.
These offices include 01 Pay and Accounts Office, 38 Units of DRTs/DRATs and 6
other DDOs. The periodicity of DDO (Cash), DFS is annual and periodicity of other
Units is biennial.
(1) DRATs / DRTs
The DRATs / DRTs were created to impart speedy adjudication of cases on
recovery of debts due to Banks and Financial Institutions. After an order is pronounced
by the Tribunal and Recovery Certificate is issued by the Presiding Officer, the
Recovery Officer has to follow procedural instructions to recover loans even by
attaching property of the defaulters or by auction of the property of defaulter. The
Recovery Officer does not have any power to drop the proceedings and close the
recovery at his level.
During the period 2011 - 12 , 01 DRATs, 09 DRTs were audited and some of
the major irregularities, pointed-out by the Audit are summarized hereunder:-
S.
NO.
NAME OF
DRAT’s / DRT’s
(DFS)
BRIEF DETAILS OF PARAS REMARKS
01 DRT – Hyderabad
(IR – 24)
Para 9. Long Pendency cases for recovery before
Recovery Officer (R.O.)
Details as per Para
B. (1) (i)
02 DRT – Patna
(IR – 12)
Para 26. Pending Recovery Certificates.
Para 30. Status in respect of disposal of (Original
Applications) OAs.
Details as per Para
B. (1) (ii)
Details as per Para
B. (1) (iii)
03 DRT – Pune (IR –
17)
Para 3. Long Pendency of Recovery Certificates
before R.O.s.
Details as per Para
B. (1) (iv)
04 DRT– I,
Chandigarh (IR –
16)
Para 3. Compromising decision after the judgment
issued by the presiding officer
Para 05. Non-execution of Recovery certificates by
Recovery Officer (Rs.947.49 Crore)
Details as per Para
B. (1) (v)
Details as per Para
B. (1) (vi)
05 DRT–II,
Chandigarh (IR –
02)
Para–8: Pending recovery certificates
Para–9: Status in r/o disposal of OAs (Original
Applications)
Details as per Para
B. (1) (vii)
Details as per Para
B. (1) (viii)
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(2) OTHER DDOs
During the period 2011 - 12 , five units amongst DDOs under Department of
Financial Services were audited and some of the major irregularities, noticed / pointed-
out by the Audit are as under :-
C. DEPARTMENT OF REVENUE
There are 52 Offices under the Department of Revenue containing 18 Units of
Directorate of Enforcement, 01 Unit pertaining to Chief Controller of Factories, 17
Units pertaining to Opium and Alkaloid, 03 DNC Offices, 03 Units of GOAW, 06
Units of other DDOs and 04 Units of PAOs. Internal Audit of all the Units of
Directorate of Enforcement are conducted on annual basis and the Units of Opium and
Alkaloid are conducted on biennial basis. Out of 08 other DDOs, DDO (Cash) Revenue
Audit is conducted on annual basis and remaining Units of other DDOs on triennial
basis and all PAOs on biennial basis. During the year 2011 - 12, 25 Units were audited
in all.
(1) CENTRAL BUREAU OF NARCOTICS
Central Bureau of Narcotics is responsible for authorization to Farmers for cultivation
of Opium, collection of raw Opium crop from Farmers, making payments of raw
Opium to Farmers including advance payments to Farmers against raw Opium Crop but
pending for test approval and processing of raw Opium at its Factories at Ghazipur and
Neemuch. During the course of Internal Audit on the accounts of various District
Opium Officers (under CBN) the following observations were made:-
S.
NO.
NAME OF UNIT
(DFS) OTHER
DDOs
BRIEF DETAILS OF PARAS REMARKS
01 DDO (BIFR), New
Delhi (IR – 25)
Para 19. Engagement of Security Guards. Details as per Para
B. (2) (i)
02 DDO (Custodian),
New Delhi (IR – 18)
Para 01. Non-Finalization of the lease deed of
office accommodation/Irregular payment
of rent of Rs. 68, 57,986/-.
Details as per Para
B. (2) (ii)
03 DDO (Spl. Court),
Mumbai (IR – 27)
Para 06. Non-Maintenance of stock Register of
Cheque Books.
Para 10. Irregular direct appointment of staff.
Para18. Irregular promotion during deputation.
Para 20. Improper maintenance of Receipt Books
Details as per Para
B. (2) (iii)
Details as per Para
B. (2) (iv)
Details as per Para
B. (2) (v)
Details as per Para
B. (2) (vi)
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(2) DIRECTORATE OF ENFORCEMENT (FEMA/FERA)
The Directorate of Enforcement is responsible for prosecuting offenders under
Foreign Exchange Regulation Act, 1973 and Foreign Exchange Management Act, 1999
to adjudicate cases of violations, levying penalties and to realize the same. During the
period 2011 - 12 , 10 Regional Units of Directorate of Enforcement were inspected and
some of the important observations made are appended below :-
S.
NO.
NAME OF
UNIT
(REVENUE)
ED FEMA
BRIEF DETAILS OF PARAS REMARKS
01 ED – FEMA,
Lucknow (IR –
26)
Para 5. Pay fixation under the 6TH
CPC.
Para 9. Irregular grant of 3rd
MACP to the Grade pay
of Rs. 6.600 to Shri V.P. Gogia, Assistant
Director and Shri A.K. Mathur, AD-II..
Details as per
Para C. (2) (i)
Details as per
Para C. (2) (ii)
02 ED – FEMA,
Ahemdabad (IR
– 36)
Para 06. Non-Realization of Penalties amounting to
Rs. 7122.95 Lakhs under FERA.
Para 07. Non-Realization of Penalties amounting to
Rs. 459.39 Lakhs under FEMA
Details as per
Para C. (2) (iii)
Details as per
Para C. (2) (iv)
03 ED – FEMA,
Bangalore (IR –
32)
Para 11. Irregular Accountal of Income Tax
Recovered from the owner of the Building
hired by ED.
Para 13. Excess payment of TA claims for Rs. 4809/-
Details as per
Para C. (2) (v)
Details as per
Para C. (2) (vi)
04 ED – FEMA,
Chandigarh (IR –
15)
Para 01. Non-recovery of penalty Rs. 72.21 Crore
Para 02. Non-disposal of seized Indian currency and
foreign currency Rs. 1047.97 Lakh.
Details as per
Para C. (2) (vii)
Details as per
Para C. (2) (viii)
05 ED – FEMA,
Jaipur (IR – 23)
Para 05 Review of Penalties, seizure and confiscation
(Recovery of Rs. 44, 56,435/-)
Para 08. Irregular /over payment of Rs. 25,440/- on
account of CCA.
Details as per
Para C. (2) (ix)
Details as per
Para C. (2) (x)
S.
NO.
NAME OF
UNIT
(REVENUE)
DOO/DNC/GM
BRIEF DETAILS OF PARAS REMARKS
01 DOO –
Chittorgarh
(IR – 48)
Para 8 Irregular expenditure on Salary to canteen
staff for three posts against the sanctioned
strength of two posts.
Para-9. Non-Recovery of amount of over payment of
cost of opium paid to cultivators to the tune of
Rs. 19,13,986/- (as on 31.12.2011) including
Rs 36543/- for the financial year 2010-2011.
Details as per
Para C(I)(i)
Details as per
Para C(I)(ii)
16
06 ED – FEMA,
Mumbai (IR –
34)
Para 03. Fixed Deposits (Rs. 7.85 Crore)
Para 04. Non-disposal of seized Indian Currency and
foreign Currency Rs. 7.29 Crore.
Para 05. Irregular payment of Rent of Office Building
Rs. 7, 21, 66,539/-
Details as per
Para C. (2) (xi)
Details as per
Para C. (2) (xii)
Details as per
Para C. (2) (xiii)
07 ED – FEMA,
Varanasi (IR –
01)
Para 3. Irregular deduction allowed while computing
of Income Tax.
Para 4. Review of Penalties, confiscation, seizure off
Indian and Foreign currency and valuables
etc.-non realization of penalties amounting
to Rs. 77, 57, 30,332
Details as per
Para C. (2) (xiv)
Details as per
Para C. (2) (xv)
(3) OTHER DDOs
During the period 2011 - 12 , 03 DDO Units, under Department of Revenue
were inspected and some of the important observations made by the Audit are
summarized as under :-
S.
NO.
NAME OF UNIT
(REVENUE) ED
FEMA
BRIEF DETAILS OF PARAS REMARKS
01 DDO (Cash)
Revenue
{IR – 07}
Para 8. Short Recovery of income Tax and surcharge
amounting to Rs. 138307 during the
Financial Year 2000-01 as shown as
FORM-16
Para 21. (A) Non-Adjustment of LTC. Advance /
Claims.
Details as per
Para C. (3) (i)
Details as per
Para C. (3) (ii)
01 DDO (CESTAT)
{IR – 30}
Para 5. Wasteful Expenditure of Rs. 5.48 lakh on
account of pay and allowances of idle
driver.
Para 6. Irregular payments of Rs. 66,312 on account
of LTC Claims in violation of LTC Rules.
Para 10. Non-adjustment of contingent advance
amounting to Rs. 10.35 Lakhs.
Details as per
Para C. (3) (iii)
Details as per
Para C. (3) (iv)
Details as per
Para C. (3) (v)
17
D. DEPARTMENT OF EXPENDITURE
There are 05 Pay & Accounts Offices and 07 Drawing and Disbursing Officers
under the Department of Expenditure. All these Offices are covered in biennial audit
programmes, except the Office of the D.D.O. (Cash) in the Department of Expenditure,
which is covered on annual basis.
During the period 2011 - 12 , 04 Units were inspected and some of the
important observations made by the Audit Party are as under :-
E. DEPARTMENT OF DISINVESTMENT
Only one unit is under the Department of Disinvestment and in the year 2011 –
12, the unit was not audited.
F. PUBLIC SECTOR BANKS & GRANTEE INSTITUTIONS
Internal Audit (B&FI) : Achievements during 2011-12
22 Units out of the 28 Units of Public Sector Banks / Grantee Institutions
approved for audit during 2011-12 were audited, thus achieving 79% target. The audit
of left six (6) units were postponed due to the special emergent reconciliation of PPF
deposits during 2011-12. Further, an amount of Rs.4.87 crore as penal interest were
levied on different banks on account of delayed remittances of collection under various
Deposit Scheme of Ministry of Finance and due to persistent efforts, penal interest of
Rs.14.61 crores was recovered during 2011-12.
S.
NO.
NAME OF UNIT
(EXPENDITURE)
DDOs
BRIEF DETAILS OF PARAS
REMARKS
01 DDO (Cash),
Expenditure, ND
(IR – 03)
Para 43. Irregular payment of Rs. 672,741/- to
M/s New Delhi Car Clinic, New Delhi
towards servicing/repair/maintenance of
staff car/three wheelers.
Details as per
Para D(1)(i)
02 DDO (SIU), New
Delhi (IR – 44)
Para 03. Deployment of staff in excess of
sanctioned strength.
Details as per
Para D(1)(ii)
03 DDO (RTC),
Chennai
(IR – 45)
Para 06. Purchase of Stationery –Excess over the
limit of Rs. 4,000/- per annum Delegated
to Head of Office vide item No. 21(B) .
Para 07. Less Recovery of Income Tax amounting
to Rs. 4300/- + SC+ Cess.
Details as per
Para D(1)(iii)
Details as per
Para D(1)(iv)
18
1. Penal Interest of Rs. 4.87 crores (approximately) was calculated for recovery
from State Bank of India and other Nationalised Banks on account of delayed
remittances of collections under various Deposit Schemes of Ministry of
Finance.
As per instructions contained in Reserve Bank of India circular number
13/4272/85-86 dated 7.4.1986, S.S. 381/99/9091 94-95 dated 9.5.1995 it was decided in
consultation with the, Ministry of Finance, and the Controller General of Accounts that
Banks handling transaction relating to Miscellaneous Govt. Schemes should report the
consolidated figures to GAD Mumbai for onward reporting to Reserve Bank of India,
Central Accounts Section, Nagpur for accountal in Government Accounts on a day to
day basis. Further, as per Reserve Bank of India, Central Office Mumbai Circular No.:
CODT 15-01-2001/1047/97-98 Dated 16-09-1997, 3 days grace period (excluding
holidays) is admissible for remittance of collections. Accordingly, penal interest is
payable by banks in all cases wherein the prescribed grace period of 3 clear working
days has been exceeded. Penal Interest on this account is recoverable for the entire
period of delay starting from date of receipt of the subscriptions at the receiving
branches till final credit of the amount to the Government Account.
During the inspection of various focal point branches of State Bank of India and
other Nationalised Banks, delay in remittance of amounts collected under various
Deposit Schemes of Govt. of India were noticed and penal interest amounting to Rs.
4.87 crores (approximately) payable to Government of India was reported as detailed in
first two paras.
The concerned branches of Bank have been advised to pay the amount of Penal
Interest mentioned against each immediately.
19
TARGET AND ACHIEVEMENTS
DURING THE FINANCIAL YEAR 2011 - 12
All the Offices of Department of Economic Affairs, Department of Financial
Services, Department of Revenue, Department of Expenditure and Department of
Disinvestment of Ministry of Finance are audited on Annual, Biennial or Triennial
basis, depending on the Budget Allotment, Sanctioned Strength and volume of work
with the Unit.
Targets fixed for number of Units to be audited and Units actually audited
during 2011 - 12 are as under :-
A. DEPARTMENT OF ECONOMIC AFFAIRS
B. DEPARTMENT OF FINANCIAL SERVICES
C. DEPARTMENT OF REVENUE
S.
No.
Name of Units (sector wise) Total Nos.
of Units
Nos. of
Units
Approved
Nos. of
Units
Audited
01 Drawing & Disbursing Offices (NSI) 11 08 06
02 Other DDO’s 03 03 01
03 PAOs 06 05 02
Total 20 16 09
S.
No.
Name of Units (sector wise) Total Nos.
of Units
Nos. of
Units
Approved
Nos. of
Units
Audited
01 DRATs & DRTs 38 16 10
02 Other DDO’s 06 07 05
Total 44 23 15
S.
No.
Name of Units (sector wise) Total Nos.
of Units
Nos. of
Units
Approved
Nos. of
Units
Audited
01 E.D. (FEMA) 18 17 10
02 Central Bureau of Narcotics/ D.O.O. 23 13 11
03 Other DDOs / PAO (GOAW) 12 04 03
Total 53 34 24
20
D. DEPARTMENT OF EXPENDITURE
E. DEPARTMENT OF DISINVESTMENT
F. PUBLIC SECTOR BANKS / GRANTEE INSTITUTIONS
S.
No.
Name of Units (sector wise) Total Nos.
of Units
Nos. of
Units
Approved
Nos. of
Units
Audited
01 PAOs / DDOs 12 06 04
Total 12 06 04
S.
No.
Name of Units (sector wise) Total Nos.
of Units
Nos. of
Units
Approved
Nos. of
Units
Audited
01 PAO / DDO 01 Nil Nil
Total 01 Nil Nil
S.
No
Name of the Units No. of Units selected/
approved for audit
No. of units
audited
1. SBI 12 11
2. Associates of SBI 04 04
3. Other PSBs 10 05
4. Grantee Institutions 02 02
5 Pvt. Bank Nil Nil
Total 28 22
21
DETAILS OF AUDIT PARA FOUND DURING 2011 - 12
(A) DEPARTMENT OF ECONOMIC AFFAIRS
1. NATIONAL SAVING INSTITUTES
NATIONAL SAVING INSTITUE, MUMBAI
PARA (A) (1) (i):- Colossal waste of Pay & Allowances on A/C of re-
deployment of surplus Staff.
The Ministry of Finance, DEA vide Order No. F2/1-2001-NSI(1) dated.
18.04.2002 ordered the restructuring of National Saving Organization and a new
organization named National Saving Institute (NSI) with Headquarter at Nagpur and 10
Regional Centers including Mumbai were created. The entire staff of erstwhile NSO
declared deemed surplus with a view to enable the Staff to opt for VRS or declared
surplus and seek redeployment. Staff opted for VRS were retired and who did not opt
for VRS were transferred to Retraining & Redeployment Division DOPT w.e.f.
1.2.2003 for redeployment.
Out of staff who did not opt for VRS and sought redeployment in Mumbai
office, three (3) persons named given below are yet to be re-deployed even after lapse
of more than 2 years.
1. Shri S.S. Nagarboone, Driver Aurangabad
2. Shri D.K. Kolhe, Driver Solapur
3. Shri R.J. Harijan, Peon Goa
These three employees are staying idle at their homes since 1.2.2003 and are
getting full salary through Demand Draft at their respective residences, from the O/o
the R.D. NSI, Mumbai as designated since 1.2.2003, without attending any office. The
office has become the O/o the sinecure for them i.e. salary without duties.
As per GOI instructions on disposition of staff while awaiting redeployment as
per Swami’s Establishment and Administration *G.I. Dept of Per & Trg. O.M. No.1/8/
88 C.S.III, dated the 23rd
Oct, 1989 MA-43 and para 6-4-1, every surplus employee
will, while borne on the surplus staff establishment, keep attending office and report to
the officer (s) designated for the purpose by the Ministry/HOD, regularly, except when
he has been granted leave of kind due and admissible to him.
22
PARA (A) (1) (ii) Avoidable payment of interest amounting to Rs. 1.68 Lakh.
During the Scrutiny of file No. A-I/Legal (PBS)/09/2004, it has been revealed
that Shrimati Parvatibai (Ex-Watchman) retired from service on 1.2.2003 and payment
towards her retirement benefits were made from 21.1.2004 to 21.6.2007. Due to delay
in payment she knock the door of CAT and consequently CAT vides order (Court
judgment in O.A. No 2100/2008) 17.09.2009.Ordered the Deptt to pay interest on
delayed payment of her retirement benefits and Deptt had to pay interest amounting to
Rs. 1.68 Lakh.
As per letter dated 3.12.2009 issued by the Under Secretary MOF, DEA (NSI
Section) the Deptt was also asked to fix the responsibility for delayed payment in the
light of Rule 68 of CCS (Pension) Rule 1972, Delay in payment of retirement benefit
has resulted in avoidable payment of interest amounting to Rs. 1.68 Lakh.
The Deptt. neither challenged the verdict of the C.A.T. in the higher court of
law nor fix the responsibility on the official/officials who did not acquit oneself well, as
desired by the Under Secretary vide letter dated 3.12.2009, till date. The reason for
delayed payment of retrial benefits may be evinced/elucidated to audit.
NATIONAL SAVING INSTITUE, NEW DELHI
PARA (A) (1) (iii):- Irregular payment of rent of Office Building Rs. 6,05,640/-
w.e.f. 14.12.2010.
The O/o NSI Delhi is presently located in a rented building belonging to ICCW
Trust at 4, Deendayal Updhayay Marg, New Delhi. The building was initially occupied
as per the lease agreement dated 31.8.1990, and the present lease deed has been
renewed up to 12.12.2010 vide lease agreement dated 19.05.2010. As per item No. 16
of annexure to schedule of delegation of Financial Power Rules 1978, the lease deed is
required to be renewed on expiry of every five years, but in the present case, this has
been renewed up to 12.12.2010. The period of about six months had been lapsed on
the date of conducting the audit. The payment of rent is being made without and
valid/lease deed/rent agreement between ICCW & Govt. of India. No yearly sanction
of payment of rent is being accorded by the Competent Authority.
The Lease agreement w.e.f 14.12.2010 be got regularized along with the
payment of electricity & water charges.
The clause regarding payment of service tax is silent in the agreement. The RS/
NSI has paid Rs. 1,92,548/- during the year 2010-11.
23
PARA(A)(1)(iv) Irregular payment of cash handling allowance Rs. 300/- Smt.
Meenu Aggarwal, Cashier.
A cash handling allowance is admissible to LDC/UDC/Asstt. handling the cash
as per prescribed rates. The amount should be revised every financial year and
sanctioned on the basis of average amount of disbursement during the pervious
financial year. Every official appointed to work as cashier, unless he is exempted by
the competent authority should furnish security of the required amount. The security
bond of Smt. Meenu Aggarwal, cashier had already been expired on the midnight of
4/4/2011.
NATIONAL SAVING INSTITUE, NAGPUR
PARA (A) (1) (v):- Bogus commission claims for Rs. 16762.60 by MPKBY
Agents Smt. Chandra Devi Srivastva of Joura (District
Murena).
It was pointed out vide para 12.3.1. and 4 of the Inspection Report for the
period 7/84 to 7/86 to 11/88 to 11/90 and 12/90 to 9/92 and 10/92 to 3/95 respectively
that Smt. Chandra Devi Srivastava, MPKBY Agent C.A. No. National Savings
Commissioner 1977/Joura fraudulently received a sum of Rs. 16762.60 by submitting
bogus claims for the month of March 1981 to January 1983 as detailed below.
S. No. Month Amount No. of Schedule
enclosed
1 Mar-81 179.2 23
2 Apr-81 80.2 24
3 May-81 274.6 11
4 Jun-81 194 9
5 Jul-81 164.6 11
6 Aug-81 450 6
7 Sep-91 650 6
8 Oct-91 545.8 5
9 Nov-81 537.2 6
10 Dec-81 902.4 6
11 Jan-81 584.1 5
12 Feb-82 1058.1 6
13 Mar-82 1141.6 6
14 Apr-82 1160.8 6
15 Sep-82 600 3
16 Oct-92 2000 10
17 Nov-82 1872 10
18 Jan-82 200 12
19 Jan-83 2368 12
TOTAL 16762.60
24
PARA (A) (1) (vi):- Review of LTC Register.
During the course of Audit a LTC Register maintained by The National Saving
Institute, Office of the Director National Saving Institute, Nagpur has been verified and
found the following lapses.
1. As per the LTC Register, it is seen that for the Years of 2008-09 advance taken
by Sh. P.D. Sakharwade and Sh. M.B. Kumbhare for the Rs. 2250/- and Rs.
12000/- vide bill No.288 Dt. 16.12.2008 are still pending.
2. It is seen that in 2009-10, Sh. Mir Azmat Ali has drawn the advance of Rs.
12900/- vide bill No. 205 dated 26.10.2009 and his total claim was Rs. 11554/-
and amount Rs. 1346/- was required to be recovered from him along with penal
interest but it is seen that Rs. 1306/- was recover from him. Thus, Rs. 40/- short
recovered.
3. It is seen that Smt. S.R. Bagde drawn the advance of Rs. 11500/- vide Bill
No.390 dated 3.10.2010 and her total claim was Rs. 14546/- the amount of Rs.
3046/- was required to be paid to the official but less amount of Rs. 2786/- was
paid.
4. It is seen that some of the Officers have refunded the LTC advance, it is
required that at the time of refund of LTC advance ,10 days leave encashment
are also to be refunded.
DDO (CASH) DEA, NEW DELHI
PARA (A) (2) (i):- Non-adjustment of Contingent Advances to the tune of Rs.
1.88 Crore.
RULE POSITION
As per the provisions contained in Rule 292 (1) of GFRs, 2005, the
Head of Office may sanction Advances to a Government Servant for purchase
of Goods or Services or any other special purpose needed for the management
of the Office, subject to the following conditions:-
(i) The amount of expenditure being higher than the permanent advance available,
cannot be met out of it.
(ii) The purchase or other purpose can not be managed under the normal
procedures, envisaging post-procurement payment system.
(iii) The amount of Advance should not be more than the power delegated to the
Head of the Office for the purpose.
25
(iv) The Head of Office shall be responsible for timely recovery or adjustment of
the Advance.
The Rule 292 (2) of GFRs, 2005 further says that the adjustment bill
along-with the balance, if any, shall be submitted by the government Servant
within fifteen days of te drawal of Advance, failing which, the advance or
balance shall be recovered from his next Salary / Salaries.
STATUS
During the test check of contingent advance register for the period 2010-
11, maintained by the D.D.O. (Cash), Department of Economic Affairs, it has
been observed by the Audit that a sum of Rs. 1.88 Crore is pending in the
register to be adjusted since the year 2006-07. as per details below:-
S. NO. FIANCIAL YEAR AMOUNT
01 2006-07 1279557.00
02 2007-08 814597.00
03 2008-09 2650649.00
04 2009-10 420300.00
05 2010-11 13678177.00
TOTAL 18843280.00
IMPACT
(i) Violation of Rules & regulations framed by Government of India in this regard.
(ii) Chances of misuse of Advance since the Audit could not ascertain as to
whether the Advances drawn by the above officers/officials were actually used
for the official purposes or not.
RECOMMENDATIONS
Since the non adjustment of Contingent and Miscellaneous Advances is a
serious irregularity under Rules, it is, therefore, suggested that the Register may
immediately be reviewed and the above Contingent and Miscellaneous Advances may
immediately be adjusted with Penal Interest (wherever applicable),
26
DDO (IES), DEA, NEW DELHI
PARA (A) (2) (ii):- Shortcomings/Omissions detected in maintenance of the
records of Grants-in-Aids.
The following shortcomings were noticed while inspecting the records in
respect of Grant-in–aid to the Institute of Economic Growth, New Delhi for the
Financial 2009 -10 & 2010 -11.
(i) Date on which utilization certificate is requested to be furnished by the
sanctioning authority to the Audit Officer and /or Accounts Officer was not
found to have been mentioned in column 10 of the register in respect of Final
instalment of the grant as well as second instalment.
(ii) Grants-in-Aids bills the aforesaid 1st and 2
nd instalment were not found to have
been prepared in prescribed Performa GAR 34 in pursuance of the provision
contained vide rule 147 of the Receipt and Payment Rules. Instead of the same
were prepared in Form T.R.30.
(iii) The assets created by the Institute of Economic Growth out of this Grant should
be maintained in the register in form GFR 19 showing the assets of permanent
value& Machinery Equipment having a life span of not less than 5 years and
costing Rs. 10000 above. A copy of the same may be made available to the
Department. An agreement should be separately entered into between IEG &
the Department. Utilization certificate of assets created out of this grant was not
being furnished by the institution.
(iv) The Institution of Economic Growth is required to maintain subsidiary account
of Govt. Grant and furnish statement of account. This is not being received.
(v) On review of records of Grants-in-aids, it has came to notice that a debit
closing balance of Rs. 14804/- pertaining to 2006-07 of Institute of Economic
Growth (IEG) was carried forward. IEG is only one grantee Institute in the unit
(IES,DEA) arranging training for probationers/trainees of Institute of
Economic Services and dependent on Grant-in-aid provided to the unit for its
day to day expenditure. It is not known how the closing balance carried forward
had been worked out.
(vi) In future grant-in-aid may be released to institute on fulfilment of conditions
for sanction of grant-in-aid laid down in GFR. It is also mentioned that above
irregularities are of persistent nature and compliance report has been submitted
in this regard.
27
(B) DEPARTMENT OF FINANCIAL SERVICES
DRT HYDERABAD
PARA (B) (1) (i) Long Pendency of cases for recovery before Recovery Officer
In terms of section 25 of the Recovery Debts to Banks and Financial Institutions Act,
1993, Recovery Officer on receipt of copy of certificate shall proceed for the recovery of
amount of Debt specified in certificate. R.O. has to expedite the recovery as early as possible
but it was observed in DRT, Hyderabad that there were many long outstanding cases where
recovery was not made till date of audit .Some of the cases are more than 5 years old. Brief
details are as under:-
Year-wise break-up of Recovery pending as on 30.9.2011
Period of Pendency No. of cases Amount in Crore
More than 3years 1507 6758.75
Between 2-3 years 854 138.50
Between 1-2 years 716 136.23
Less than one year 393 213.76
Necessary steps for early recovery in all the above cases may be taken. In case the
recovery of full amount as per certificate not made, the purpose of issuance of Recovery
Certificate is defeated.
DRT PATNA
PARA (B) (1) (ii) Pending Recovery Certificates.
A report was obtained from Recovery Officer-I & Recovery Officer-II of the
DRT, Patna in r/o status of pending RCs as on 27.07.2011. The RCs pending as on
27.07.2011 were as follows:
Recovery Officer Amount of RCs No. of RCs Amount more
than 3 Years
RO-I 672.78 Crore 609 149.99 Crore
RO-II 81.30 Crore 409 44.97 Crore
TOTAL 754.08 Crore 1009 194.96 Crore
It was pertinent to mention that Rs. 194.96 Crore of pending RCs were more
than 3 Years old. As such efforts are required for settlement of the O/S RCs.
28
PARA (B) (1) (iii) Status in r/o disposal of OAs (Original Applications)
A report was obtained from the DRT, Patna regarding the status of disposal of
Original Applications (OAs) and it was noticed that 611 OAs (involving) Rs.642.64
were pending as on 31.03.2011.
All the said OAs were pending for more than one years. Whereas under the
DRT, Act 1993 the cases should have been settled/decided with in Six months.
Efforts needed to be taken to settle the OAs as early as possible.
DRT PUNE
PARA (B) (1) (iv) Long Pendency of Recovery Certificates before R.O.s.
Chapter V of the Recovery of Debts due to Banks and Financial Institution Act
1993 speaks about the Recovery of Debt determined by Tribunal. The Recovery officer
shall on receipt of the copy of the certificate proceed to recover the amount of debt
specified in the certificate. This recovery of debt should be as early as possible.
Scrutiny of records pertaining to DRT Pune reveals that large numbers of Recovery
Certificates are pending before Recovery Officer in which debt was not recovered.
Details of such cases as on 31-12-2011 was under:-
Statement Showing the Information of Pending Recovery Proceeding and
Decretal Amount as on 31-12-2010.
From the above details it is clear that some cases are pending more than five
years. In such circumstances, when recovery could not be made even after expiry of
such long period, purpose of Recovery Certificates has been failed.
Sl. No. YEAR No. of RP Cases Decretal Amount
1. 2001 29 14.00
2. 2002 88 132.95
3. 2003 98 136.65
4. 2004 218 515.95
5. 2005 84 126.50
6. 2006 49 59.55
7. 2007 114 80.42
8. 2008 105 80.42
9. 2009 178 380.12
10. 2010 244 324.32
11 2011 30 77.70
Total 19.28 Crores
29
DRT-I CHANDIGARH
PARA (B) (1) (v) Compromising decision after the judgment issued by the
Presiding Officer.
During the last audit of DRT Chandigarh, it was observed that 443 number of
Recovery Certificates were issued in which the recovery of Rs. 804.18 Crore was
involved. These cases were settled at a compromising amount of Rs. 74.57 Crore.
Similarly during the instant spell (2008-2011) of audit 184 no. of recovery certificates
were issued in which the recovery of Rs. 97.85 Crore was involved. These cases were
also settled at a compromised amount of Rs. 34.08 Crore. This is not in conformity of
DRT Act. In terms of Rule 26 of the Recovery of debts due to Banks and Financial
Management Act,1993.
Rule: 26- validity of certificates and amendment thereof:
1. It shall not be open to the defendant to dispute before the Recovery Officer the
correctness of the amount specified in the certificate, and no objection to the
certificate on any other ground shall also be entertained by the Recovery
Officer.
2. Not with standing the issue of a certificate to a Recovery Officer, the Presiding
Officer shall have power to withdraw the certificate or correct and clerical or
arithmetic mistake in the certificate by sending and intimation to the Recovery
Officer.
3. The Presiding Officer shall intimate to the Recovery Officer any order
withdrawing or cancelling or any correction made by him under sub-section
(2).
Apart from the rule positions mentioned above. Recovery Officers have no
power to amend the recovery certificate, as it was done by compromising the huge
amount of Recovery. This action of Recovery Officers is not in conformity of DRT Act
is against the provisions of the Act.
Hon’ble Presiding Officer is competent to make any correction in the recovery
amount. Any bank who wants to compromise and settle the recovery amount below the
recovery amount has to first deposit the recovery amount and also to move an
application before Hon’ble Presiding Officer regarding the compromise between the
bank and debtor, if any, Hon’ble Presiding Officer after going through the merits
decides/reject the compromise between bank and debtor. In case compromise is
approved by the Presiding Officer, an order in this regard is communicated to Recovery
Officer and the case file consigned to the records. The observations were also
highlighted in the annual Review of internal audit 2006-07.
30
PARA (B) (1) (vi) Non-execution of Recovery certificates by Recovery Officer
(Rs. 947.49 Crore).
As per rule 25 of the Recovery of Debts Due to Banks and Financial Institutions
Act,1993 the Recovery Officer shall on receipts of the copy of the Recovery Certificate
under sub-section 7 of the section 19 proceed to recover the amount of Debts specified
in the certificate by one or more of the following mode viz.
1. Attachment and sale of the movable property of the defendant.
2. Arrest of the defendant and his detention in prisons
3. Appointing a receiver for the management of the movable or immovable
properties of the defendant.
Recovery Officers are required to execute the Recovery Certificates and
recovery of the certificate amount at the earliest. During the course of audit in DRT
Chandigarh. It was observed that there were 506 cases pending on 30.6.2011 the detail
of pending cases is as under:-
An amount of Rs. 947.49 crores was recoverable from these 506 cases.
Sr. No. YEAR No of Cases pending as on 30.6.2011
1 2000 11
2 2001 92
3 2002 46
4 2003 63
5 2004 33
6 2005 43
7 2006 13
8 2007 44
9 2008 62
10 2009 37
11 2010 35
12 2011 47
TOTAL 506
31
DRT-II CHANDIGARH
PARA (B) (1) (vii) Pending recovery certificates
A report was obtained from Recovery Officer-I & Recovery Officer-II of the
DRT-II, Chandigarh in r/o status of pending RCs as on 31/03/2011. The RCs pending
as on 31/03/2011 were as follows:
Amount of RCs No. of RCs O/s more than 3 years
RO-I 416.42 Crore 516 375
RO-II 626.67 Crore 483 369
TOTAL 1043.09 Crore 999 744
It was pertinent to mention that more than 74% of pending RCs were more than
3 years old. As such efforts were required to look into it for settlement of the o/s RCs.
PARA (B) (1) (viii) Status in r/o disposal of OAs (Original Applications)
A report was obtained from the DRT-II, Chandigarh regarding the status of
disposal (as on 31/03/2011) of Original Applications (OAs) and it was noticed that
1113 OAs (involving Rs.1620.84 Crore) were pending as on 31/03/2011:
Total No. of OAs : 1113
Amount : 1620.84 Crore
Pending for more than 1 year to 3 year : 684
Pending for more than 3 year : 429
All the OAs were pending for more than one years. Under the DRT, Act, 1993
the cases should have been settled/decided with in six months.
Efforts needed to be taken to settle the OAs as early as possible.
32
OTHER DDOs
DDO (BIFR), NEW DELHI
PARA(B)(2)(i) Engagement of Security Guards.
During the checking of File No. 01(01)/BIFR/GAS/02 O/o the BIFR, New
Delhi, regarding engagement of Security Guards, it was observed that the office of the
BIFR, New Delhi has been obtaining the services of M/s Manpower Security Services
for providing 12 Hrs. securities since year 2008. The contract with M/s Manpower
Security Services has the following flaws:-
The Firm’s offer for providing for 8 Hrs duty for one Security Guard @ Rs.
4299/-/P.M. as per comparative Statement dated 21-10-2008, was accepted by the
Office of BIFR, New Delhi, but the firm is charging for 12 Hrs. showing 8+4=12 Hrs
taking duty from the one security Guard, means a Security Guard has to perform
continuous duty for 12 Hrs but salary paid to him is of 8 Hrs, which is in contravention
of the Factory’s Act and the other Laws of the State which prohibit the working hours
to be beyond 8 Hrs in a day for watch and ward duty. Besides this the firm is also
exploiting the (4) four security guards engaged for the Security of the office of the
BIFR, for which they have forwarded the compliant against the contractor to the Deptt.
As per comparative statement dated 21-10-2008 the firm has not quoted the rate
of service charge due to which the firm become first lowest whereas at the time of
billing the firm is changing the Service Charges@10% which is irregular and recovery
may be made from the firm for payment made on account of service charge which is
the contractor’s liability as the rate for the same was not quoted by the firm.
Non deposit of Bid Security & Performance Security: As per Rule 157 &
158 Bid Security and Performance Security to be got deposited from the bidder before
opening the tender.
DDO (CUSTODIAN), NEW DELHI
PARA (B) (2) (ii):- Non-Finalization of the lease deed of office irregular
payment of rent of Rs.68, 57,986/-.
The Custodian has occupied the portion of 3rd
floor of the Bank of Baroda
Building, Parliament Street, New Delhi on rent for their office@ Rs. 27/- per square
feet per month and service charge@5/- per square feet per month.. The office has paid
rent upto 31.07.2011 provisionally pending finalization of the lease deed. On review of
file No. CUS/ADMN./BOB/506/VOL.III revealed that the office has sent the draft
format of the lease deed to the Zonal office of Bank of Baroda vide letter no. 695/
CUS/ADMN./MHA/PAS/06(5270) dated 09.08.2011 the following are the observations
of audit.
33
(i) The payment of rent amounting to Rs. 102358x67 months= 6,857,986/- is
irregular due to non-renewal of agreement w.e.f. 01.01.2006 to till date. The
payment of rent of the building occupied by the office without proper lease
deed is irregular.
(ii) The Bank of Baroda vide their letter dated 19.4.2011 had demanded Rs.
39130/- June,07 to March 08 and April 08 to March 09 alongwith the penal
interest @13% amounting to Rs. 14,434/-. The un-timely payment of dues
attracting penal interest be avoided in future.
DDO (Spl. Court) Mumbai
PARA(B)(2)(iii). Non-Maintenance of stock Register of Cheque Books.
The DDO with Cheque drawing powers will requisition their requirement of
cheque books from the concerned Pay and Accounts Office. The latter will supply to
the DDO the minimum number of cheque books, sufficient for his requirement for
three months. Issue of such cheque books will also be entered in the stock Register of
cheque books.
To keep an account of the receipts, issues and balance of cheque books/forms
shall maintain (FORM CAM 1). Each morning, the Cashier should take such cheque
books from the Officer-in-charge, as likely to be used during the course of the day and
should remain responsible for their use and return of the balance at the close of the day.
Another register should be maintained by the cashier for showing the cheque forms
received by him each day and those returned by him. The entry should be made by the
Cashier with his dated initials in this register.
PARA(B)(2)(iv) Irregular direct appointment of staff.
On review of records, it was observed that OSD, Spl. Court, Mumbai has made
following temporary appointments:
S.
No.
Name of the Staff
Member
Designation Date of
Appointment
Old pay scale Revised pay
scale
1 Smt. V.A.Tikam Court Steno 10/6/2008 8000-13500 15600-39100
Gr. Pay 5400
2. Mr. P.H. Padelkar Clerk 10/10/1995 3050-75-3950-80-
4590
5200-20200 Gr.
Pay 1900
3. Smt.U.U. Kambli Clerk 06/04/2005 3050-75-3950-80-
4500
5200-20200 Gr.
Pay 1900
4. Mr. N.P. Kadam Clerk 02/02/2006 3050-75-3950-80-
4590
5200-20200 Gr.
Pay 1900
5 Mr. J.M. Deshmukh Driver 16/10/2009 13000 16000
6. Mr. P.D. Tawade Peon 09/01/2006 3050-75-3950-80-
4590
5200-20200 Gr.
Pay 1900
7. Mr. K.Y. Deshmukh Peon 06/02/2006 2500-55-2660-60-
3200
5200-20200 Gr.
Pay 1800
34
8. Mr. K.D. Pawar Peon 20/03/2007 2500-55-2660-60-
3200
5200-20200 Gr.
Pay 1800
9. Mr. R.R. Pardeshi Peon 06/03/2007 2500-55-2660-60-
3200
5200-20200 Gr.
Pay 1300
10. Mr. H.N. Sarang Peon 02/03/2009 2500-55-2660-60-
3200
5200-20200 Gr.
Pay 1800
As per GFR Rule 253
1. Proposal for additional to Establishment: All proposal for additions to
establishment shall be submitted to sanctioning authority in accordance with
the instructions contained in Rule 11 of the Delegation of Financial Powers
rules and other such instructions which may be prescribed in this regard.
a) All proposals for creation of new establishment or a revision in an existing
establishment, whether temporary or permanent in excess of delegated power
should contain, inter-alia: - The present costs of the establishment in existence.
b) Cost implication of the charge proposed giving details of pay and allowances of
posts(s) proposed
c) Expenditure in respect of claim to pension or gratuity or other retirement
benefits that may arise in consequence of he proposals;
d) Details on how the expenditure is proposed to be met including proposed re-
appropriations.
2. A full review of the justifications for continuation or conversations of
temporary posts on consultations with Intergraded finance or Ministry of
Finance where necessary should precede any order for continuation of
temporary posts or conversion into permanent posts.
3. All proposals for increase in emoluments for an existing posts(s) shall be
referred to the Ministry of Finance for approval.
The following observations are made in respect of the above.
Authority of Govt. of India under which the above appointments were made
have not been referred in the above orders, nor could the same be produced to audit for
review. On personal discussion with the OSD, it was apprised to audit that the above
appointments have been made with concurrences of the Hon’able Lordship of High
Court.
It was irregular, as the Hon’able Lordship of High Court have no jurisdiction to
make such appointment in Govt. of India. Therefore, services of above incumbents
may, therefore, immediately be terminated and such appointments may please be made
from staff selection commission/surplus cell to avoid any subsequent legal
complications toward their claiming regular appointments in future.
35
Medical examination at the time of 1st entry in Govt Service is a statutory
requirement.
2. Medical exam had not been conducted as per G.I.MF OM No. 45(1)-E-V/54,
dated 24th
March ,1954. No.5/6/54-RPS dt. 28th
Sepetember,1956 and DP &
AR OM No. 15015/1/79-Estt(d) dt. 26th
June 1971, included in Chapter 13 of
DDO Manual (pt.II) whereas in the cases referred above no medical
examination have been conducted which is irregular and may immediately be
complied with.
3. Police Verification: It has been noticed that no police verification was
conducted by the office of the Spl. Court Mumbai which is also irregular.
PARA(B)(2)(v) Irregular promotion during deputation.
During the scrutiny of the records of the Special Court, Mumbai it has been
noticed that employee appointed on deputation were promoted to Higher Scales, details
given in Annexure-‘A’ which is irregular as per Para 7.1 of Chapter 19 of Swamy’s
Complete Manual on Establishment and Administration and Appendix-5 of Swamy’s
Compilation of F.R.S.R. Part-I. This list is illustrative and not exhaustive, so these
cases alongwith such similar may be reviewed.
PARA(B)(2)(vi) Improper maintenance of Receipt Books:
As per Rule 22(1) (2) and (3) of Swamy’s Compilation of Receipt and
Payments Rules, Receipt Book in machine numbers in form GAR 6 has been
prescribed for receiving Government money. The Receipts Books must be kept in the
personal custody of the officer to authorize to sign the receipt on behalf of the
Government. Before a receipt book is brought into use, the number of forms contained
therein shall be counted and the result recorded in a conspicuous place in the book over
the signature of Govt. Officer, in-charge of the book. Counter foils of every receipt
books shall be kept in his personal custody. No Govt. Officer may issue duplicate or
copies of receipts granted for money received on the allegation that the original has
been lost.
During the scrutiny of Receipt Book No. 3101 to 3200, which is being used in
the audit period i.e. 1/4/2007 to 31/03/2011. it has been seen that receipt books is not
being maintained properly. Certificate of number of pages has not been given by the
officer in charge of the book. Counter foils of receipt 3167 is missing in the book,
which has been tear off in between the pages and the officials maintaining the receipts
books cannot give any satisfactory reply. No money has been taken in cash book nor
demand draft has been sent to PAO, ( Banking), New Delhi, received through, receipt
no. 3167. Loss of receipt like this is a serious lapse and it can leads to
fraud/embezzlement. Investigations may be done as to how the receipt has been lost
and responsibility may be fixed accordingly.
36
(C) DEPARTMENT OF REVENUE
DOO - CHITORGARH
PARA (C)(1)(i) Irregular expenditure on Pay and Allowances of canteen
staff for three posts against the sanctioned strength of two
posts.
It has been observed that the pay and allowances for the canteen staff is being
drawn for 3 persons since 2006-07 to 2010-11 against the sanctioned strength of 02
persons. This has also been observed during the audit for the period of 04/07 to 03/09.
The said pay and allowances of one extra employee are being drawn against the
sanctioned post of the office of DOO Kota whereas the salary is being drawn under the
budget head of DOO Div-.I, Chittorgarh which is irregular.
PARA (C)(1)(ii) Non-Recovery of amount of over payment of cost of opium
paid to cultivators to the tune of Rs. 19,13,986/- (as on
31.12.2011) including Rs. 36543/- for the financial year 2010-
2011.
During the course of Inspection of Register of Recoveries maintained for the
period from 1999-2000 to 2011-12, it has been observed that an amount of Rs.
19,13,986/- (as on 31.12.2011) including Rs. 36543/- for the financial year 2010-2011
is pending for recovery from the opium cultivators against the over-payment of opium
cost during the past years.
It is therefore, suggested that the outstanding amount shown above should be
recovered from the concerned cultivators.
ED –FEMA LUCKNOW
PARA (C)(2)(i) Pay fixation under the 6TH
CPC
As Shri Umesh Chandra, Chowkidar / Peon does not posses the required
minimum qualification, the official shall be re trained along with other ‘D’ officials
for allowing PB-1.
(A) Sh. Rajeshwar Singh, AD-II/AD-I.
(i) The officer joined the office as AD-II on 05.12.2007 (A/N) on deputation basis
from “UP Police”. The officer was paid “40% arrears of 6th
CPC” for the
period from 01-01-2006 to 31-07-2008 (including the period pertaining to “UP
Police”). Therefore, action may be taken to raise the debit (for arrears
37
pertaining to 01.01.2006 to 05.12.2007) against the “Govt. of UP Police”
asking the latter to pay the amount of arrears pertaining to them.
(ii) It has also been noticed that the special pay (Rs. 450/-) was added to the pay in
the pay band and the salary was paid accordingly. This addition of special pay
was not in order. The pay should be as follows and special pay of Rs. 450/- (or
any revised amount under the 6th
CPC to be verified from “UP Police”) shall be
payable separately as fixed amount per month.
01-01-2006 18470+5400=23870
01-07-2006 19190+5400=24590
01-07-2007 19930+5400=25330
01-07-2008 20690+5400=26090
AD-1 22-10-2008 21480+6600=28080
The pay & allowance/amount of arrears may be revised accordingly. The debit
balance payable by the Govt. of U.P. (UP Police) may be worked out accordingly.
Imp. The intimation of the recovery of arrears paid/recovery made for the period
w.e.f. 1.1.2006 to 5.12.2007 from Govt. of U.P. Police may be sent to IAW (HQ) and
PAO, Deptt. Of Revenue, New Delhi.
PARA (C)(2)(ii) Irregular grant of 3rd
MACP to the Grade pay of Rs. 6.600 to
Shri V.P. Gogia, Assistant Director and Shri A.K. Mathur,
AD-II.
(I) As per para 2 of Annexure 1 to OM. No. 35034/3/2008-Estt. (D) dated
19.05.2009 for grant of MACP on recommendation of 6th
CPC, the MACP
envisages merely placement in the immediate, not higher grade pay in the
hierarchy of the recommended revised pay bands and grade pay as given in
section 1, Part A of the first schedule of the CCS (Revised Pay) Rules, 2008.
Shri V.P. Gugia, Assistant Director has been given 3rd
financial up-
gradation w.e.f. 01.09.2008 in the MACP scheme to the grade pay of Rs. 6600
in PB-3 (Rs. 15600-39100). Vide esstt. Under No. 22/2009 dated 19.11.2009
by Enforcement Directorate New Delhi.
Prior to this MACP, he was placed in grade pay Rs. 5400 (PB-2) in PB-
2 Rs. 9300-34800. Accordingly he should be given 3rd
MACP in Grade Pay
Rs. 5400 in PB-3 (Rs. 15600-39100).
The order issued by the Directorate of Enforcement, New Delhi is not in
accordance with provisions of MACP, scheme which requires modification.
38
(II) Shri A.K. Mathur, AD-II, in spite of vetting of pay fixation by previous audit
party, pay fixation was not revised and recovery also not made according to
instruction:-
S. No. w.e.f. Pay wrongly allowed Pay to be fixed
1. 28.10.2007 Rs. 22100+5400 Rs. 21290+5400
2. 01.07.2009 Rs. 22930+5400 Rs. 22090+5400
On 28th
October 2007, he was promoted but promotional benefits not to be
allowed since there is no change in “Grade Pay” in term of rule 13 of CCS (Revised
Pay ) Rules, 2008.
He was given 3rd
MACP vide Establishment Order No. 22/2009 dated
17.11.2009 of Directorate of Enforcement, New Delhi and A-40/01/LZO/201-592 dtd.
26.05.2011 of Directorate of Enforcement, Lucknow to the next Grade pay Rs. 6600/-
in PB-3 (15600-39100) w.e.f.01.09.2008. He was in PB2(9300+34800) with Grade
Pay Rs. 5400.
The up-gradation under MACP is to be granted in the immediate next higher
Grade Pay in the hierarchy of recommended revised pay band and Grade pay as given
in Section I, Part A of the 1st schedule of the CCS Revised Pay Rules 2008. Keeping in
view of this point, he should be given 3rd
MACP in Band Pay Rs. 15600-39100 with
Grade Pay Rs. 5400/-. Grant of grade pay Rs. 6600/- is not correct, so error may be
rectified and excess payment be recovered.
The Pay of Shri A.K. Mathur, AD-II should be fixed in following manner:-
Period w.e.f. Pay Wrongly allowed Pay to be allowed
1.01.2006 Rs. 19790+5400 Rs. 10250(old scale)
01.04.2006 Rs. 19790+5400 Rs. 10500/-
20.06.2006( MACP-III) Rs. 20550+5400 Rs. 20510+5400
01.07.2006 Rs. 21330+5400 Rs. 20510+5400
01.07.2007 Rs. 23140+5400 Rs. 21290+5400
01.07.2008 Rs. 22970+5400 Rs. 22090+5400
01.09.2008 Rs. 23830+6600 Rs. 22920+5400
01.07.2009 Rs. 24750+6600 Rs. 23770+5400
01.07.2010 Rs. 25690+6600 Rs. 24645+5400
39
ED FEMA AHMEDABAD
PARA(C)(2)(iii) Non-Realization of Penalties amounting to Rs. 7122.95 Lakhs
under FERA.
On reviewing the reports of outstanding penalties submitted to its Headquarters
Office by ED(FEMA), Ahmadabad, it was revealed that huge amount of penalties is
still pending under FERA as detailed below:-
S. NO. Under The
Act
Amount
Realised
during 2009-
2010
Amount
Realised
during 2010-
2011
Amount
outstanding
as on
31.03.2011
No. of
cases
1 FERA 12.48 6.36 7122.95 470
* Year wise break-up not provided
Out of 470 cases of penalties under FERA, in 97 cases penalty was stayed by
the Adjudicating Authorities and in 240 cases action was initiated under Section
70(i)(iii) to realize the amount.
It is suggested that prescribed action in remaining 133 cases involving penalties
amounting to Rs. 3,695.54 (in Lakhs) may also be initiated to recover the penalty
amount .
PARA(C)(2)(iv) Non-Realization of Penalties amounting to Rs. 459.39 Lacs
under FEMA.
On reviewing the reports of pending penalties by ED(FEMA), Ahmadabad , it
was revealed that huge amount of penalties is still pending under FEMA as detailed
below:- Amt. in lacs
S.NO. Under The
Act
Amount Realised
during 2009-2010
Amount
Realised
during 2010-
2011
Amount
outstanding
as on
31.03.2011
No. of cases
1 FEMA 13.48 5.7 459.39 N/A
* Year Wise break up of the amount outstanding is as under :-
YEAR (Rs.) in Lakhs
2004-05 5.79
2005-06 46.37
2006-07 11.84
2007-08 131.97
2009-10 29.6
2010-11 128.85
40
ED FEMA BANGALORE
PARA(C)(2)(v) Irregular Accountal of Income Tax Recovered from the
owner of the Building hired by ED.
Office of Directorate of Enforcement Bangalore is located in a rented building
(FEMA,1999) at No. 9/1, State Bank Road, Banglore-560001 and has entered into an
agreement for payment of rent @ Rs. 50200/- per month. During the scrutiny of the
bills and sanction for the year 2008-09, 2009-10,2010-11 for payment of rent, it is
noticed that an amount of Rs.9036/- per month is being deducted as TDS from the land
owners bill and the same is not accounted in Govt. A/c under Income Tax from 27-11-
2006. This resulted in non utilization of Budget and non payment of Income tax to the
income tax department which is mandatory.
PARA(C)(2)(vi) Excess payment of TA claims for Rs. 4809/-
On sanction of TA claim of official of Enforcement Directorate Zonal
office, Bangalore, it was found that following officials had claimed excess DA in their
TA claims:
S. No. Name of Designation of
officers
Tour
station
Amount
claimed
Actual
amount
food and
DA
Exces
s paid
Bill No.
1. F. Kadermydeen, EO Hyderabad 730 563 167 520/08-09
dated
31.03.2009
2. M. Gangadharan,EO Delhi 3695 3555 140 518/08-09
31/03/2009
3 M. Gangadharan, EO 840 700 140 259/17-09-
09
4. T. Joseph, AEO Mysore 713 600 113 459/23-03-
2010
5. F. Kader Mydeen,EO 615 300 315 130/14-07-
2010
6. F. Kader Mydeen,EO 3010 2076 934 482/19-03-
2009
7. G.
Sankaranarayanan,EO
8830
Rail
Tour
5530 3000 341/07-12-
2009
The above amount may be recovered from the above officials.
41
ED FEMA CHANDIGARH
PARA (C)(2)(vii) Non-recovery of penalty Rs. 72.21 Crore
During the test check of records and other reports maintained by the
department, i.e. Deputy Director, of Enforcement, Foreign Exchange, Chandigarh
revealed that a sum of Rs. 72.21 Crore on account of penalty imposed by competent
authority against various defaulters under FERA and FEMA was pending for recovery
as on 31.03.201 as per detailed given below:-
S.NO. UNDER ACT NO. OF CASES AMOUNT OF PENALTY
OUTSYANDING (RS. IN
LAKHS)
1. FERA 371 6401.75
2. FEMA 223 819.48
TOTAL 594 7221.23
The recoveries under the FEMA and in FERA cases are outstanding since 2003-
04.
PARA (C)(2)(viii) Non-disposal of seized Indian currency and foreign currency
Rs. 1047.97 Lakh.
During the test check of records and reports maintained in the office of the
Deputy Director, Directorate of Enforcement, Foreign Exchange of currency seized
under FERA and FEMA Act and reports forwarded to Hqrs. Office, New Delhi
revealed that the department seized both Indian and Foreign currency amounting to Rs.
1047.97 under FERA and FEMA Act were lying to be credited into Govt. accounts at
the end of March 2011 as per detailed given below:-
1. UNDER FERA SEIZEDINDIAN
CURRENCY
RS. 3,59,70,177
2. UNDER FEMA SEIZEDINDIAN
CURRENCY
RS. 5,01,71,511
3. UNDER FERA SEIZEDINDIAN
CURRENCY
RS. 106.01
4. UNDER FEMA SEIZEDINDIAN
CURRENCY
RS. 80.55
TOTAL RS. 1047.97 Lakhs
These amounts are outstanding since 1993. The reasons and circumstances
under which the amount could not be deposited into Govt. accounts may be intimated
to audit.
42
ED FEMA JAIPUR
PARA (C)(2)(ix) Review of Penalties, seizure and confiscation (Recovery of
Rs. 44,56,435/-)
1) Non- realization of penalties imposed under FERA amounting to Rs.
44,56,435/-
During the current audit for the Financial Year 2009-11 it has been noticed from
the information given that a huge amount of penalty is recoverable by Enforcement
Directorate (FEMA), Jaipur from different parties in 96 cases. The details of amount
recoverable are given below:-.
FERA RS. 44, 56,435/- in 96 cases as on 31-03-2011.
During the period of audit an amount of Rs. 2,62,600/- have been recovered.
The head of office has assured during the discussion that he will give importance to the
recovery of balance and intimate to the IAW (HQ) .
PARA (C)(2)(x) Over payment of Rs. 25,440/- on account of CCA.
Sh. Virendra Singh, AEO and Sh. Anil Jaimani, AEO are working in
this office since June 2009 and September 2011 respectively on deputation basis. Both
the officers are drawing CCA @ Rs. 480/- P.M. which is irregular, since the CCA has
been merged with the Transport Allowance on implementation of 6th
CPC. Hence, a
recovery of Rs. 13,440/- and Rs. 12000/- are made from Sh. Virendra Singh, AEO and
Anil Jaimani, AEO respectively, totalling to Rs. 25440/-
ED FEMA MUMBAI
PARA (C)(2)(xi) Fixed Deposits (Rs. 7.85 Crore)
In the cases pertaining to violation of FERA & FEMA, officials from the
Directorate of Enforcement raid, and seize the currencies (Indian as well as Foreign).
The seized foreign currencies are then converted into Indian Rupees and along with
seized Indian currencies are kept as fixed deposits in various banks till the decision of
the Appellate authority.
On the scrutiny of the records, showing the fixed deposits revealed that an
amount of Rs. 7.85 Crore which had matured remained either to be encashed or
renewed. Due to non-renewal or non-encashment, Government has lost substantial
revenue by way of interest.
Department in its reply stated that FDRs will be renewed by the end of the
month from their retrospective dates. Hence there will not be any loss of interest.
Final action of the Department is awaited.
43
PARA (C)(2)(xii) Non-disposal of seized Indian Currency and foreign
Currency Rs. 7.29 Crore.
During the test check of records and reports maintained in the office of the Joint
Director, Directorate of Enforcement, Foreign Exchange and Currency seized under
FERA and FEMA Act and reports forwarded to Headquarters Office, New Delhi
revealed that the Department seized both Indian and Foreign currency amounting to
Rs. 7.29 Crore under FERA and FEMA act were lying to be credited into the
Government Accounts at the end of March, 2011 which was outstanding since,1993 as
per detailed given below:-
ACT Type of Currency Seized
Amount
FERA Indian Currency 5,35,69,231
Foreign Currency 5,02,11,276
FEMA Indian Currency 7,39,92,001
Foreign Currency 23,40,958
PMLA Indian Currency 65,81,007
Indian Currency booked in FDR under Provisional
Attachment
7,28,66,084
PARA (C)(2)(xiii) Irregular payment of Rent of Office Building
Rs. 7,21, 66,539/-
The office of ED, FEMA, Mumbai is presently located on the 2nd
Floor of
Mittal Chambers, since 1975, being taken on rent. As per item No. 16 of Annexure to
schedule of Delegation of Financial Powers Rules, 1978, the rent agreement is required
to be renewed upto 31.03.2011 for the Building 23-24 Mittal Chambers, Nariman Point,
Mumbai -400021. The agreement is renewed upto 20-09-2002 and the last agreement
was made on 21-11-1997. The period of 111 months has been lapsed for want of
renewal of agreement. The rent is paid upto 31-10-2011@ Rs. 6, 50,149/- per
month(Rs. 118/- per Sq. Feet)
The payment of rent is being made without any valid lease deed/rent agreement.
No yearly sanction of payment of rent is being accorded by the competent authority.
The lease agreement w.e.f. 21-09-2002 in respect of 23-24 Mittal Chambers, be
got regularized.
44
ED FEMA VARANASI
PARA (C)(2)(xiv) Irregular deduction allowed while computing of Income Tax.
During the course of checking of Income Tax cases, it has been revealed that
the deduction of Transport Allowance has been allowed in full drawn during the
Financial Year i.e. 2009-2010 and 2010.2011 where as it was to be allowed at Rs.
9600(maximum) during a financial year in respect of the following officers.
1. Shri Balvinder Singh,Asstt. Director.
2. Shri D.J. Mukherjee, AEO
3. Shri H.K. Pandey, Steno
4. Shri G.K. Dutta, Enforcement Officer
5. Shri R.T. Verma, UDC
6. Shri K.C. Prasad, Sepoy
7. Shri S.C. Saxena, Enforcement Officer
8. Shri B.Shah, AD-II
It has been presumed that in the previous financials years the same procedure
has been followed for calculating the income tax. That may also be reviewed and the
recovery may be affected immediately.
PARA (C)(2)(xv) Review of Penalties, confiscation, seizure off Indian and
Foreign currency and valuables etc.-non realization of
penalties amounting to Rs. 77, 57, 30,332/-
On review of records of Penalties, Seizure and Confiscation of Indian
Currencies, Foreign Currencies, Valuables and other Movable or Immovable properties,
it was observed that penalty of Rs. 77,57,30,332/- is still outstanding and to be
realized. A photocopy of the statement regarding realization of penalty ( as on 31-3-
2011) is enclosed.
In this connection, it is pertinent to mention here the last Audit party-7 in their
previous Audit Report (for the Year 2008-09) had also pointed out the same
discrepancy and suggested to take some more vigorous steps to recover the above
(huge) amount of penalties. Although the Authorities have submitted that they are
taking each and every step to recover the old outstanding penalties, it is once again
impressed upon that the office should take some more proactive steps/actions to recover
the old outstanding penalties.
45
OTHER DDOs
DDO (CASH) REVENUE
PARA (C)(3)(i) Short Recovery of Income Tax and surcharge amounting to
Rs. 138307 during the Financial Tear 2000-01 as shown as
FORM-16.
(A) Short Recovery of Income Tax and surcharge amounting to Rs. 138307/-
during the Financial Year 2000-01 as shown as FORM-16
(B) Short Recovery of Income Tax amounting to Rs. 12,046/-
(C) Less Recovery of TDS amounting to Rs. 64.00 for the Year 2001-02
(D) Incorrect calculation of Income Tax-Less Recovery of Income Tax.
(E) Non-recovery of Income Tax amounting to Rs. 7601/- from Sh. M.K. Zutshi,
Chairman, CBEC (Retired)
PARA (C)(3)(ii) (A) Non-Adjustment of LTC. Advance /Claims.
As per LTC Rules, cases in which advance is drawn, the final bill Shall have to
be submitted with in one month after completion of return journey. If the official fails
to submit the adjustment Bill within the prescribed period ,the advance sanctioning
authority of the advance will levy penal interest from the date of advance taken.
On checking the LTC Advance Register, maintained by the DDO(Cash), DOR,
New Delhi, it has been noticed that the LTC Advance in the following cases have not
been adjusted:-
S.
NO.
BILL
NO.&DATE
NAME&DESIGNATION OF OFFICER AMOUNT (RS.)
1. 28/01.05.08 SHRI P.K. MOHANTY,JS 55000/-
2. 219/15.09.09 SHRI NITIN SAINI,T.O. 29300/-
3. 388/09 SHRI ARNAY AICH,J.A 2800/-
4. 188/13.8.10 SHRI BABU LAL 9700/-
5. 579/11.03.11 SHRI JOSEPH ANTONY 75000/-
6. 70/05.05.2010 SHRI K. RAMALINGAM 42900/-
7. 153/10-11/16-7 SHRI S.C. SARKAR 27500/-
Immediate steps may please be taken to recover the unadjusted amount and the
claim may please be forfeited in cases where the adjustment bills have been delayed by
more than three months.
(B) Non-Adjustment of Foreign Travel Advance
On checking of FTA Register it was observed that FTA claim in respect of Shri
P.K. Mohanty, JS drawn vide bill No. 26/08 for Rs. 190751/- is lying unadjusted in the
records.
46
( C) No-reflection of TTA Advance in LPC
S. NO. BILL NO.&DATE NAME&DESIGNATION OF
OFFICER
AMOUNT (RS.)
1. TTA-29/06 SHRI B.S. MEHRA,US 35500/-
2. TTA-5421/06 SHRI DEEPAK
KLASDEKD,JS(BHOPAL)
78000/-
3. TTA-518/07 SHRI DEEPAK MEHTA
R.O.(CHANDIGARH)
16500/-
DDO CASH CESTAT
PARA (C)(3)(iii) Wasteful Expenditure of Rs. 5.48 lakh on account of pay and
allowances of idle driver.
Scrutiny of records of CESTAT revealed that Shri Heera Lal was appointed as
three wheeler Driver on temporary basis with effect from 7.12.2006 against post which
became vacant due to absorption of three wheeler driver in the post of staff car driver
w.e.f. 1.11.2005.
Further scrutiny of records revealed that the three wheeler of CESTAT was off
the road since February, 2006 and was recommended for condemnation by Airports
Authority of India vide vehicle Condemnation Certificate no. AAI/EM/VCC/403/ 2008/
1624 dated 26.02.2008.
The above detail shows that the three wheeler is lying without working
condition in the department since February 2006 to till date of audit.
Thus, an amount of Rs. 5.48 lakh, as detailed below, paid as pay and
allowances to idle driver of the vehicle was wasteful:
PEIROD GROSS SALARY OF EXTRA DRIVERS (RS.)
12/06 TO 2/07 21,209 - 21,209
03/07 TO 2/08 97,924 - 97,924
03/08 TO 2/09 1,50,162 3,89 1.54,057
03/09 TO 2/10 1,97,315 5,346 2,02,661
03/10 TO 5/10 72,510 72,510
Total 5,48,361
The services of the driver could have been diverted or other needy departments
to avoid this wasteful expenditure.
47
PARA (C)(3)(iv) Irregular payments of Rs. 66,312 on account of LTC Claims
in violation of LTC Rules.
As per Rule 6 of CCS leave Travel Concession Rules when a concession to visit
any place in India is proposed to be availed of by the government servant and or
members of his family, intended place of visits should be declared by the Government
servant in advance, to his controlling authority and the government servant and his
family members must visit the declared place to become eligible for making the LTC
claim
However, scrutiny of LTC Bil no. 406 dated 07.07.2009 in respect of Ms.
Archana Wadhwa, Member (Judicial), CESTAT revealed that at the time of applying
for advance before proceeding on LTC, Mrs, Wadhwa declared Kanya Kumari (Tamil
Nadu) as a place to be visited. As per details given in the LTC bill it was seen that Mrs.
Wadhwa did not visit the declared place i.e. Kanyakumari and visited to Coimabatore,
Thiruvanthapuram and Mumbai.
Since Ms. Archana Wadhwa did not visit the declared place, the payment of Rs.
66, 312/- on account of LTC by the department to Mrs. Wadhwa was irregular.
Thus Rs. 66, 312 paid on account of LTC may be recovered.
PARA (C)(3)(v) Non-adjustment of contingent advance amounting to Rs.
10.35 Lakhs.
As per Rule-292 (2) of general Financial Rule 2005, the adjustment bills of
advance for contingent and miscellaneous purpose, along with balance, if any, shall be
submitted by the Government servant within fifteen days of the drawl of advance,
failing which the advance of balance shall be recovered from his next salary / salaries.
Test check of the Abstract Contingent/bill register revealed that advances
amounting to Rs. 10.35 Lakh pertaining to the period 2003 to 2011 ware lying
outstanding for want of adjustment as per details given below:
Sl.
No.
Bill No. & Date Name of Party Amount of
Advance
Remarks / Settlement
bill no. & date.
1 711/6.3.2003 Employment New Delhi 34787 Pending
2 64/1.5.2003 ET&T Computer Education
& Training Centre
6100 64/1.5.2003
3 157/5.6.2003 NICSI 25882 952/5.1.2011
4 375/5.9.2003 NICSI 46586 952/5.1.2011
5 579/10.12.2003 NICSI 236396 952/5.1.2011
6 753/19.2.2004 HCL Info. Systems Ltd. 352350 Pending
7 802/9.3.2004 Hindustan Motors Ltd. 323242 Pending
8 815/12.3.2004 Employment New Delhi 23871 Pending
9 25/5.4.2005 AR, CESTAT, Banglore 80000 904/5.3.2007
10 136/20.5.2005 AR, CESTAT, Banglore 80000 14/2.4.2007
11 211/1.7.05 AR, CESTAT, Banglore 20000 294/107.207
12 269/20.7.05 AR, CESTAT, Banglore 80000 14.2.4.2007
48
13 345/23.8.05 AR, CESTAT, Banglore 30000 294/2.4.2007
14 783/24.2.2006 AR, CESTAT, Banglore 50000 294/2.4.2007
15 165/13.5.2008 Living Media India Ltd. 780 Pending
16 620/14.9.2009 Hinti Protsahan Bhata 32800 541/18.10.2010
17 663/5.10.2009 AR, CESTAT, Banglore 100000 590/1.9.2010
18 756/6.11.09 AR, CESTAT, Banglore 100000 718/8.10.2010
19 770/10.11.09 AR, CESTAT, Banglore 100000 590/1.9.2010
20 856/7.12.2009 AR, CESTAT, Ahemadabad 100000 630/14.9.2010
21 999/18.1.2009 AR, CESTAT, Ahemadabad 100000 630/14.9.2010
22 1033/29.1.2010 AR, CESTAT, Ahemadabad 100000 378/8.7.2010
23 1074/15.2.2010 AR, CESTAT, Ahemadabad 100000 630/14.9.2010
24 1061/28.1.2011 AR, CESTAT, Banglore 100000 Pending
25 1144/17.2.2011 100000 Pending
26 1230/16.3.2011 AR, CESTAT, Banglore 100000 Pending
Total 10,35,030/-
These advances were lying outstanding mainly with A.R. CESTAT, Bangalore,
AR. CESTAT Ahmedabad, NIC etc. In the absence of adjustment of these advances, it
could not be ensured, whether the whole amount of advances was utilized for the
purpose for which it was given. Non refund of unspent balance of advance, if any,
tantamount to misuse of government money.
Further Rule 292 (i) (iv) of GFR stipulates that the Head of office shall be
responsible for timely recovery or adjustment of the advance.
Expeditious action may be taken for adjustment of above advances and
responsibility may be fixed for non-adjustment or non-recovery of outstanding advance.
(D) DEPARTMENT OF EXPENDITURE
DDO (CASH) EXPENDITURE
PARA D(1)(i) Irregular payment of Rs. 672,741/- to M/s New Delhi Car Clinic,
New Delhi towards servicing/repair/maintenance of staff car/three wheelers.
While checking the record of the DDO, Department of Expenditure, New Delhi
for the periods 2010-11,it is observed that on awarding the contract for
servicing/repair/maintenance of staff car to M/s New Delhi Car Clinic, New Delhi, the
authorities have failed to analysis the documents submitted by the tendering firms. It is
seen from the records that the tenders were invited for awarding the contract w.e.f.
01.08.2010 after extending the AMC to M/s New Delhi car Clinics, New Delhi since
30/05/2005 for three years continuously.
The quotation for AMC w.e.f. 01.08.2010 were invited vide letter dated
24.5.2010. The department had received 5 quotations by the due date 11.6.2010 and
only one quotation by M/s New Delhi Car Clinic, New Delhi could only qualified for
consideration. Thus, a fresh quotation was invited again vide letter dated 16.6.2010.
This time five quotations were received by the due date, i.e.28.6.2010.Out of 5
quotations received two firms named 1. M/s Pee DEE Motors, New Delhi and
49
2 M/s New Delhi car Clinic, New Delhi could only qualify for consideration and the
contract was awarded to M/s New Delhi Car Clinic, New Delhi.
On going through the tender documents it has been revealed that both the
quotations qualified for consideration were submitted by the firms belonging to a
family and it defeats the purpose of awarding contract by open invitation of tenders.
Thus, the award of contract to M/S New Delhi Car Clinic, New Delhi by the
Department was not in order. Moreover, an amount of Rs. 6,72,741/- has been paid to
M/s New Delhi Car Clinic, New Delhi during the period from 01.08.2010 to
31.03.2011.
DDO (SIU), NEW DELHI
PARA D (1)(ii) Deployment of staff in excess of sanctioned strength.
As per guidelines of Staff Inspection Unit (SIU), the main objectives were to
review staffing of Government establishment through a programme of studies, to
ensure utilization of staff sanctioned for a particular purpose/function and
simplification of work/procedure in so far as it will result in economies without
sacrificing efficiency
Scrutiny of the records related to sanctioned strength and men-in-position for
the period 2008-11 it was noticed that the SIU had incurred pay and allowances of Rs.
71.62 lakh on the excess staff against the sanctioned strength as detailed below:
S. No. YEAR Name of Post Sanctioned
Strength
Men in
Position
Amount of pay
and allowances
1. 2008-
09
Dy. Secretary -- 2 1307716
2. Private
Secretary
1 3 892095
3. Jamadar -- 2 289905
4. 2009-
10
JS -- 1 221204
5. Dy. Secretary -- 2 1719313
6. Private
Secretary
1 2 585897
7. Jamadar -- 1 210666
8. 2010-
11
JS(Oct-Feb.) -- 1 421419
9. Dy. Secretary -- 1 772969
10 Private
Secretary
1 2 650869
Jamadar -- 1 90600
TOTAL 7162653
This indicates unauthorised expenditure on account of Pay and Allowances on
surplus staff without adequate work in SIU.
50
DDO (RTC) CHENNAI
PARA D (1)(iii) Purchase of Stationery –Excess over the limit of Rs. 4,000/-
per annum Delegated to Head of Office vide item No.
21(B) of Annexure to Schedule V of Delegation of Financial
Power Rules.
Attention is invited to the provisions provided under the above cited item.
The following are the details of purchases of stationery made during 2005-2006.
S.
NO.
BILL NO. & DATE AMOUNT
(RS.)
SUPPLIER
1. 87 DT. 14-10-2005 440/- VARIETY FANCY &
STATUIOARY,CHENNAI
2. 119 DT. 20-12-2005 2233/- NCCF,CHENNAI
3. 130 DT. 19-01-2006 1867/- NCCF,CHENNAI
4. 139 DT. 10-02-2006 1981/- NCCF,CHENNAI
TOTAL 6221/-
This is a clear excess over the prescribed limit of Rs. 4,000/- for the Head of
Office for a Financial Year.
2006-07 S.
NO.
BILL NO. & DATE AMOUNT
(Rs.)
SUPPLIER
1. 18 DT. 10-05-2006 1929/- NCCF, CHENNAI
2. 58 DT. 12-07-2006 1538/- NCCF, CHENNAI
3. 69 DT. 02-08-2006 4348/- NCCF, CHENNAI
4. 77 DT. 17-08-2006 3900/- NCCF, CHENNAI
5. 86 DT. 04-09-2006 5187/- NCCF, CHENNAI
6. 109 DT. 04-10-2006 7635/- NCCF, CHENNAI
7. 131 DT. 02-11-2006 2464/- NCCF, CHENNAI
8. 134 DT. 03-11-2006 3119/- NCCF, CHENNAI
9. 159 DT. 16-01-2007 3074/- NCCF, CHENNAI
10. 187 DT. 20-03-2007 9368/- M/S VINCO INTERNATIONAL,
CHENNAI
TOTAL 45562/-
These purchases need to be regularized by obtaining the ex-post facto sanction
of the Head of Department.
The current Audit position is as under:-
YEAR AMOUNT (RS.) EXCESS
2008-2009 13169/- RS. 9169/-
2009-2010 NA NA
2010-2011 7800/- RS. 3800/-
51
PARA D (1)(iv) Less Recovery of Income Tax amounting to Rs. 4300/- +
SC+ Cess.
During the scrutiny of records pertaining to the period 2008-2009 in respect of
Office of RTC, Chennai, it has been observed that vide Bill No. 189/- dated
31.03.2010, Honorarium .@ Rs. 2500/- each have been paid to Smt. Hemalatha
Sapthrishi Sr. A.O. and Shri N. Raja AAO and payment made to them by Cheque No. B
007511 dated 31.03.2010. Income Tax has not been deducted at source. This results in
less recovery to the tune of Rs. 1000/-+ SC+ Cess in respect of the above said officials.
Similarly, an amount of Rs. 16,209 towards leave encashment has been drawn
by Smt. Hemalatha Sapthrishi Sr. A.O. vide Bill No. 187 dated 31.03.2010 and cheque
No. B 007510 dated 31.03.2010. Income Tax has not been recovered/deducted from the
incumbent. An amount of Rs. 3242 + SC+Cess be recovered and deposited under the
Head Income Tax along with interest.
(E) DEPARTMENT OF DISINVESTMENT
Only one unit is under the Department of Disinvestment & in the year 2011 –
12, it was not audited.
(F) PUBLIC SECTOR BANKS & GRANTEE INSTITUTIONS
PARA F (i) Penal Interest of Rs. 4.87 crores (approximately) recoverable from
State Bank of India and other Nationalised Banks on account of
delayed remittances of collections under various Deposit Schemes
of Ministry of Finance.
As per instructions contained in Reserve Bank of India circular number
13/4272/85-86 dated 7.4.1986, S.S. 381/99/9091 94-95 dated 9.5.1995 it was decided in
consultation with the, Ministry of Finance, and the Controller General of Accounts that
Banks handling transaction relating to Miscellaneous Govt. Schemes should report the
consolidated figures to GAD Mumbai for onward reporting to Reserve Bank of India,
Central Accounts Section, Nagpur for accountal in Government Accounts on a day to
day basis. Further, as per Reserve Bank of India, Central Office Mumbai Circular No.:
CODT 15-01-2001/1047/97-98 Dated 16-09-1997, 3 days grace period (excluding
holidays) is admissible for remittance of collections. Accordingly, penal interest is
payable by banks in all cases wherein the prescribed grace period of 3 clear working
days has been exceeded. Penal Interest on this account is recoverable for the entire
period of delay starting from date of receipt of the subscriptions at the receiving
branches till final credit of the amount to the Government Account.
52
During the inspection of various focal point branches of State Bank of India and
other Nationalised Banks, delay in remittance of amounts collected under various
Deposit Schemes of Govt. of India were noticed and penal interest amounting to Rs.
4.87 crores (approximately) payable to Government of India was pointed out. Details of
amount payable as penal interest are given in the annexure.
The concerned branches of Bank have been advised to pay the amount of Penal
Interest mentioned against each immediately.
State Bank of India
Statement of Penal Interest levied during the year 2011-12
SSll.. NNoo.. BBrraanncchh NNaammee Penal Interest Levied Total
PPF 1968 SCSS SDS
R. Bond,
DSRGE etc.
1 Meerut Cant 66019.00 801398.00 0.00 0.00 867417.00
2 Muzaffarpur, Bela Ind. 20641.00 0.00 0.00 0.00 20641.00
3 Jaipur 142968.00 1147453.00 0.00 0.00 1290421.00
4 Nagpur, Itwari 2727609.00 7234045.00 0.00 0.00 9961654.00
5 Varanasi 1240808.00 9555421.00 0.00 0.00 10796229.00
6 Dehradun 8526.00 768075.00 0.00 0.00 776601.00
7 Goa 116281.00 0.00 0.00 0.00 116281.00
8 New Delhi, Tis Hazari 208548.00 21905046.00 0.00 0.00 22113594.00
9 Raipur 139998.00 595469.00 0.00 0.00 735467.00
10 Tirupati 296042.00 314324.00 0.00 0.00 610366.00
11
State Bank of Indore
now merged with SBI 2424.00 132262.00 0.00 0.00 134686.00
Total 4969864.00 42453493.00 0.00 0.00 47423357.00
Other Public Sector Banks
Statement of Penal Interest levied during the year 2011-12
SSll.. NNoo.. BBrraanncchh NNaammee Penal Interest Levied
PPF 1968 SCSS SDS
R. Bond,
DSRGE
etc.
1 United Bank of India 0.00 389162.00 0.00 0.00 389162.00
Total 0.00 389162.00 0.00 0.00 389162.00
Associates of SBI
Statement of Penal Interest levied during the year 2011-12
SSll.. NNoo.. BBrraanncchh NNaammee Penal Interest Levied
PPF 1968 SCSS SDS
R. Bond,
DSRGE
etc.
1 SBBJ 2949.00 0.00 0.00 0.00 2949.00
2 State Bank of Patiala 232.00 980541.00 0.00 0.00 980773.00
Total 3181.00 980541.00 0.00 0.00 983722.00
Grand Total 48796241.00
53
PARA F. (ii) Penal Interest amounting to Rs. 14.61 crores (approximately)
recovered from various branches of State Bank of India and other
Nationalised Banks on account of delayed remittances of collections
under various Deposit Schemes of Ministry of Finance
A Branch-wise and Bank – wise statement showing the penal interest recovered from
various public sector banks on account of delayed remittances of collections under various
deposit schemes of Ministry of Finance during the financial year 2011-12 is given in annexure.
State Bank of India
Branch-wise/Scheme-wise Statement of Penal Interest recovered during the year 2011-12
SSll..
NNoo.. BBrraanncchh NNaammee Penal Interest Recovered Grand Total
PPF-1968 SCSS
R. Bond,
DSRGE SDS
1 Berhampur 30130.00 16985.00 0.00 0.00 47115.00
2 Mumbai, GAD 1996223.93 0.00 0.00 0.00 1996223.93
3 Patna, Baily Rd. 140017.00 41079.00 0.00 0.00 181096.00
4 Gandhinagar 2968142.00 0.00 0.00 0.00 2968142.00
5 Kanpur, Latouche
Rd.
395249.40 189003.00 0.00 0.00 584252.40
6 Bangalore, Shivaji
Nagar
7030001.00 20026954.66 0.00 0.00 27056955.66
7 Chennai, T. Nagar 1092696.00 28326489.00 0.00 0.00 29419185.00
8 Chennai. Mian Br. 1804.00 0.00 0.00 0.00 1804.00
9 Pune 1476734.00 5530363.00 0.00 0.00 7007097.00
10 Kolkata, VIP Road 409561.00 2891190.00 0.00 0.00 3300751.00
11 Madurai 72496.00 368469.00 0.00 0.00 440965.00
12 Lucknow 11148.00 0.00 0.00 0.00 11148.00
13 Goa 116382.00 30685.00 0.00 0.00 147067.00
14 Gorakhpur 89956.00 0.00 0.00 0.00 89956.00
15 Jallandhar 153128.34 906671.00 0.00 0.00 1059799.34
16 Baroda 119725.00 0.00 0.00 0.00 119725.00
17 Burdwan 293453.00 2898810.00 0.00 0.00 3192263.00
18 Trivandrum 762148.00 135000.00 0.00 0.00 897148.00
19 Nagpur, Itwari Br. 929694.00 0.00 0.00 0.00 929694.00
20 Trichirapalli 111398.00 115525.00 0.00 0.00 226923.00
21 Mumbai, Safedpul 10478371.00 9719474.00 0.00 0.00 20197845.00
22 Ahmedabad,
Polytechnic Br.
306024.00 0.00 0.00 0.00 306024.00
23 Raipur 2125990.03 5906082.00 0.00 0.00 8032072.03
24 Nagpur, Sevasadan
Br.(State Bank of
Saurashtra)
2511.00 157085.00 0.00 0.00 159596.00
Total 31112982.70 77259864.66 0.00 0.00 108372847.36
Other Public Sector Banks
Statement of Penal Interest recovered during the year 2011-12
SSll..
NN.. BBrraanncchh NNaammee Penal Interest Recovered Grand Total
PPF-1968 SCSS
R. Bond,
DSRGE SDS
1 Bank of India 1492968.00 0.00 0.00 0.00 1492968.00
2 Union Bank of India 761199.00 0.00 0.00 20390.00 781589.00
54
3
Punjab National
Bank 14783897.00 16528895.00 0.00 0.00 31312792.00
4
Central Bank of
India 2636530.00 504248.00 0.00 0.00 3140778.00
Total 19674594.00 17033143.00 0.00 20390.00 36728127.00
Associates of SBI
Statement of Penal Interest recovered during the year 2011-12
SSll..
NN.. BBrraanncchh NNaammee Penal Interest Recovered Grand Total
PPF-1968 SCSS
R. Bond,
DSRGE SDS
1
State Bank of
Trivandrum 344173.00 657572.00 0.00 0.00 1001745.00
Total 344173.00 657572.00 1001745.00
Private Bank
Statement of Penal Interest recovered during the year 2011-12
SSll..
NN.. BBrraanncchh NNaammee Penal Interest Recovered Grand Total
PPF-1968 SCSS
R. Bond,
DSRGE SDS
1 ICICI Banks 1936.00 8381.00 0.00 0.00 10317.00
Total 1936.00 8381.00 10317.00
Grand Total 146113036.36
*****************
